Swedish electric automaker, Polestar, has announced a delay in the production of its Polestar 3 model, now expected to begin in the first quarter of 2024. The decision comes in light of necessary additional time for final software development on the new all-electric platform shared by Volvo Cars.
Earlier today, Volvo announced it would be similarly delaying the production of its flagship electric SUV, the EX90, for the same reasons. It’s no surprise here since Chinese parent company Geely owns Volvo, and subsequently, Polestar, which is a subsidiary of the latter.
Despite the production delay, Polestar saw a record first quarter deliveries of 12,076 cars, a 26% increase year on year. The company has also seen an expansion in its global footprint, boasting over 100,000 cars on the road across 27 markets.
Polestar’s current estimates for 2023 global volumes are between 60,000 to 70,000 vehicles, indicating annual growth of 16% – 36%, following last year’s record deliveries of 51,491 cars. Production for the Polestar 4 model, however, remains on schedule, with a planned start in China in the fourth quarter of 2023 and in other markets in early 2024.
In response to the economic climate affecting the automotive industry, Polestar is implementing cost management measures, including a global hiring freeze and a 10% headcount reduction, to drive greater efficiencies across the business.
“We are taking necessary steps to strengthen Polestar in the near-term. While production of Polestar 3 will now start in the first quarter of 2024, the successful launch of Polestar 4 last month means that we add two strong offers in the attractive electric SUV market in 2024. I am confident that we will deliver on our growth ambitions and path towards profitability,” said Thomas Ingenlath, Polestar CEO.
For now, it seems only Tesla is able to mass produce EVs, particularly the Model Y, which has become the top-selling car globally in numerous markets.
