Polestar, a spinoff of Volvo, is poised for another challenging year in 2025 after a disappointing performance in 2024. The electric vehicle (EV) manufacturer disclosed its prediction of a revenue drop for 2024 following weaker than anticipated sales for its Polestar 3 and 4 models. This comes in the context of a highly competitive EV market price war.
The flagging sales have not gone unnoticed by Polestar’s creditors. A year ago, the automaker secured a massive loan of $950 million from a banking syndicate, promising in return a revenue of over $5.3 billion by 2024, a figure that now likely won’t be met. Based on the latest guidance, the company’s revenue for 2024 will fall significantly short of 2023’s $2.4 billion figure.
In addition to the revenue downfall, Polestar has to rework all its financial statements for the past two years due to accounting discrepancies. The car maker admitted to underreporting assets and liabilities associated with the car-building tooling, along with other minor mistakes.
However, in the face of adversity and recent restructuring, including a new CEO, CFO, and COO’s appointment in 2024, the company still harbors hopes for its impending models. The futuristic Polestar 5 sedan, based on the impressive Precept concept launched in 2021, is slated for a launch this year, with intentions to decentralize sales with an expansion into France.
Wrapping up their update, Polestar announced that the forthcoming Polestar 7 would be a “luxury compact SUV,” indicating their entry into the popular and potentially rewarding vehicle segment.
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