Polestar CEO announces strategic review as EV deliveries drop

Polestar is conducting a “strategic review” of its operations after reporting a 14% fall in third-quarter EV deliveries.

The Swedish company has been hit with falling demand for its electric vehicles due to high interest rates, making hybrid cars a better alternative for customers. 

Its vehicle count dropped from 13,900 vehicles in the third quarter of last year to over 11,900 vehicles in 2024’s third quarter, Reuters reports.

The company, which is majority owned by China’s Geely, has recently replaced its top executives, including the CEO.

Polestar said it expects revenue for the full year to remain stagnant due to the difficult market conditions and import duties. Last year, it recorded a revenue of USD 2.38 billion.

The new CEO has announced a strategic review to “set out a clear path” for Polestar’s development.

“A key to our future success will be the development of our commercial capabilities: going from showing to actively selling cars,” Michael Lohscheller, who took over as Polestar CEO on October 1, said. “Adopting a more active sales model is already supporting our ambitions, as the first markets to implement it are showing solid order intake.”

The company reaffirmed its target of achieving break-even cash flow by the end of 2025 but at a lower volume than previously targeted, the Reuters report said.

Polestar has been reducing headcount and negotiating with suppliers to lower the manufacturing price at its product lines.

Currently, Polestar makes most of its vehicles in China. But tariffs on Chinese imports has compelled it to grow its production base in the US.