Polestar EV Maker doubles revenue as electric car industry explodes

Electric vehicle maker Polestar said on Thursday that its revenue nearly doubled in the first half of 2022 due to rising demand and that it may have to raise prices further if material costs continue to rise.

“We continue to have a very strong order book,” chief financial officer Johan Malmqvist told Reuters. “As for inflationary pressures, we have raised prices and this is something we are watching closely to see if additional action is needed to protect our margins.”

The Swedish automaker, founded by China’s Geely and Volvo Cars, also reaffirmed its annual target of delivering 50,000 electric vehicles (EVs).

Polestar, which listed on the Nasdaq in June via a merger with a special purpose acquisition company (SPAC), expanded into new markets this year, but the cost of doing so resulted in a net loss of $502 $.7 million for January-June, compared to a loss of $368.2 million a year earlier.

As countries aim for net zero carbon emissions and gasoline prices rise, demand for electric vehicles has increased. Automakers have scrambled to ramp up production amid supply chain bottlenecks and rising costs for battery components and materials.

Many automakers have raised vehicle prices because consumer demand has remained strong, but some worry that high inflation and economic uncertainty will sooner or later affect sales.

Polestar posted revenue of $1.04 billion for the six months ended June 30, up from $534.8 million a year earlier. At the end of June, Polestar was selling cars in 25 countries, up from 19 a year earlier. The company reported a $372.3 million non-cash charge related to its Nasdaq listing. Malmqvist said the company ended the first half with $1.4 billion in cash. Polestar deliveries rose nearly 125% to around 21,200 cars in the first six months of the year, from 9,510 a year earlier.

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