STOCKHOLM, Sweden — Polestar, a Swedish electric vehicle (EV) manufacturer, reduced its operational loss in the second quarter as the auto sector progressively recovered from pandemic-related supply chain bottlenecks.
The cash-strapped Swedish automaker, created by China’s Geely and Volvo Cars, reported an operating deficit of $274.4 million on Thursday, down from $627.3 million the previous year, although revenue increased to $685.2 million from $589.1 million.
Despite moving closer to profitability, Polestar, like its competitors, continues to battle with previously high raw material prices, which – due to a lag – put pressure on the second quarter margin, despite lowering prices for minerals such as lithium, cobalt, and nickel.
Polestar CEO Thomas Ingenlath told Reuters that he expects decreased raw material prices to benefit the company’s 4% gross margin estimate in the second half of 2023.
Polestar reported a net loss per share of $0.14 in the third quarter, up from $0.12 the previous year. At the conclusion of the quarter, cash and cash equivalents totaled $1.06 billion, up from $884.3 million the previous three months.
Its shares, which are traded on the NYSE, were down 3.7% in premarket action.
