Polestar, the Swedish automaker, has reduced its sales forecast for 2023 by up to 25% and postponed the launch of its high-volume electric crossover, the Polestar 3, for the second time. The delay, which is due to software development issues affecting Volvo’s new electric platform, has pushed back production from August 2023 to Q1 2024. The platform development issues have also impacted Volvo’s EX90 flagship model, whose production has been delayed from December 2023 to H1 2024. US deliveries of the Polestar 3 have been delayed to Q3 2024.
Polestar now predicts global sales of 60,000 to 70,000 units in 2023, down from its earlier prediction of 80,000 units. The automaker delivered 51,491 units in 2020. Polestar’s CFO, Johan Malmqvist, said that the tougher economic climate and high market uncertainties made it difficult to compensate for the absence of Polestar 3 volumes with incremental Polestar 2 volume, leading to the decision to cut sales estimates. Polestar CEO Thomas Ingenlath said that the adjustment would enable the automaker to protect the profit margin on the Polestar 2.
To reduce costs, Polestar will cut global headcount by 10%, or around 300 jobs, and institute a global hiring freeze. The automaker will also forgo the 500 jobs it intended to add this year. Malmqvist added that Polestar is working on additional initiatives to drive out cost and conserve cash in the company, such as trimming the development costs of certain car programs and efficiency gains with its commercial operation. The latest delay in launching the Polestar 3 puts further pressure on Polestar’s retailers, who are struggling with limited inventory from a single sedan model.
Matthew Haiken, a Polestar dealer, expects customer deliveries of the Polestar 3 to begin in Q2 2024. The CEO of Polestar Short Hills in New Jersey said that the delay puts “a lot of stress” on the retail network, as the EV market is highly competitive, and “everybody is super-aggressive.” He added that the EV market is an SUV world, and Polestar 2 is not an SUV.
