Mixed 2024 results hold Polestar in a challenging grapple

Chinese-Swedish EV maker Polestar reported an uptick in fourth-quarter sales and order intake for 2024, signaling a potential turnaround amid a turbulent year. However, despite tripling its lineup, the company sold fewer vehicles over the full year than in 2023. 

For the final quarter of 2024 – in many countries, a strong sales rally before the year draws to an end – Polestar announced retail sales of 12,256 vehicles, a 5.3% increase from 11,640 in the same period in 2023. Order intake also surged 37.2% year-over-year, reflecting the awaited interest in the company’s newer, higher-priced models, including the Polestar 3 and 4. 

Change of methodology

The final quarter sparks hope for the upcoming year, which the company faces under renewed management with ex-Opel Michael Lohscheller at the helm and the recent announcement of Jonas Engström’s appointment as Chief Operating Officer. Also, the company has started adopting sales through traditional dealer channels and online.

Zooming in on full-year sales, the picture for Polestar blurs. Retail figures fell 15% to 44,851 units compared to 52,796 in 2023, despite adding two cross-overs (the 3 and 4) to the previously single model lineup (the 2).

As a recap, the company targets 200,000 vehicles yearly. Of all the four quarters, only Q1 performed better than Q4. The decline highlights the ongoing struggles of EV manufacturers facing global headwinds such as slowing demand, rising competition, and price cuts driven by Tesla’s aggressive strategy.

Also important for the interpretation is that Polestar announced a shift in its reporting methodology. It now focuses on retail sales—vehicles sold to end customers—rather than invoiced deliveries (which include in-house and agent hand-overs).

The company published the adjusted figures to make fair comparisons over the year and avoid a year-over-year decline for Q4. The official line in the press release tells that the metrics change aligns better with industry standards and provides a clearer picture of actual consumer demand. 

Keeping the Faith

The newcomers Polestar 3 and Polestar 4 accounted for 56% of incoming orders in the final quarter of 2024, signaling a diversification of the company’s portfolio beyond its Polestar 2 midsize sedan.

CEO Michael Lohscheller’s outlook remains hopeful despite the underwhelming results: “The changes being made to our commercial operations are having a positive impact. We’re entering 2025 with strong momentum.”

Lohscheller has emphasized streamlining commercial operations to drive efficiency. His review and the company’s 2024 earnings will be presented during a webcast on January 16th, providing investors with a clearer outlook on Polestar’s path to breakeven cash flow by year-end. “The order intake growth reflects the appeal of our new models and the steps we’ve taken to address operational challenges,” Lohscheller said. “We are optimistic about 2025.”