Polestar Q1 2024 Loss Widens to $383 Million Amid Tariffs, Pricing Pressures, and Product Mix Shifts

Polestar reported a widened net loss of $383 million for the first quarter of 2024, compared to a loss of $166 million in the same period last year. Although total deliveries rose by 7% year-over-year and revenue remained largely flat at $633 million, the positive impact of higher sales volumes was offset by U.S. tariffs, pricing pressures, and shifts in product mix. The higher-priced Polestar 3 accounted for only 9% of deliveries, while the Polestar 4 made up 67%. Europe remained the key market, contributing 78% of total sales. Tariffs imposed by the U.S. have increased manufacturing costs and squeezed profit margins, prompting the company to offer discounts to attract customers. To control expenses, Polestar has delayed the launch of new models and is prioritizing updates to its existing lineup. A refreshed Polestar 4 is expected to begin deliveries later this year, while an updated Polestar 2 is scheduled for 2027. The next all-new model will be the compact SUV, Polestar 7. Additionally, higher sales commissions, one-time personnel-related costs, and increased marketing expenditures contributed to rising expenses. Recently, Polestar secured loans and equity financing from Geely and banks. Volvo Cars converted part of its debt holdings into equity, and Polestar received approval to increase its green trade finance facility by €50 million.