Polestar ( PSNY ) posted its first profit since going public in Q3 as the Swedish electric car maker builds momentum heading into the end of 2022. Strategic cost-cutting measures and rising demand pushed Polestar into positive earnings as the company expects 50,000 deliveries by the end of the year and at the same time consolidate its position in the rapidly developing global automotive industry.
Backed by established industry vets Volvo and Geely, the EV maker managed to turn a profit for the first time as a public company. Meanwhile, many electric vehicle brands have watched their losses widen this earnings season.
Rivian (RIVN), for example, cited higher input costs as the reason for posting a net loss of more than $1.7 billion in the third quarter.
Meanwhile, Polestar is quickly becoming a contender in the expanding EV market with a strict focus on design, innovation and, above all, sustainability.
In April, Hertz, the car rental company, expanded its EV fleet and ordered up to 65,000 Polestar electric vehicles, a significant deal considering the automaker only delivered 29,000 of them in 2021.
After going public on the Nasdaq stock exchange under the ticker PSNY in June 2022, Polestar has accelerated its growth strategy with a new platform and funding sources.
The electric car maker expanded its diverse portfolio of premium electric cars in October, officially unveiling the Polestar 3, its first electric SUV with a range of 300 miles and a price tag of around $84,000.
Polestar CEO Thomas Ingenlath said in the company’s third quarter earnings report: “We are truly [electric] car company, we’re in production, putting cars on the road today and delivering on our ambitious growth plan,” and it shows in the company’s results.
Polestar (PSNY) Q3 2022 financial updates and milestones
In October, Polestar reported a year-to-date total of 30,424 deliveries, with around 9,215 delivered in the third quarter. Ingenlath noted that if not for the lockdown in China due to Covid, the company would have easily hit its 50,000 delivery target.
Meanwhile, Polestar expects the fourth quarter to be its highest production period to date, with more than 20,000 expected deliveries. The company’s chief financial officer, Johan Mamqvist, says that Polestar will “catch up” because it has already produced vehicles that are now being delivered to customers.
Since this is Polestar’s first profit as a public company, the electric car maker decided to compare the results for the first nine months of 2022.
Polestar achieved sales of $1.48 billion in the first nine months of 2022 from 30,000 deliveries. Strong backing ($1.6 billion) has helped the company navigate the changing economic environment – it is well-funded through 2023.
Perhaps more importantly, Volvo and Geely’s established Polestar network means the EV maker can aggressively enter major automotive markets (Asia, EU, US) without building or partnering.
The company already operates in 27 markets in seven countries. Polestar’s asset-focused strategy helped the company reduce its operating loss by 33% while fueling its first quarterly profit as a public company of $299.4 million.
Polestar plans to quickly expand its EV portfolio with the Polestar 4, a sports SUV, expected in 2023, followed by the Polestar 5 sport GT in 2024 and the Polestar 6 roadster in 2026.
Shares of PSNY are up more than 20% today as investors react to the positive news. However, Polestar shares have fallen more than 50% since the start of 2022.
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