Polestar releases Q4 and full-year 2022 financial results.

Polestar Automotive Holding UK PLC, the Swedish electric performance car brand, has reported its preliminary unaudited financial and operational results for the year ended December 31, 2022. According to the report, the company experienced an 84% increase in revenue, or USD 1,124.7 million, driven mainly by higher Polestar 2 vehicle sales with continued commercial expansion across markets.

Gross profit increased USD 118.5 million due to higher Polestar 2 sales and lower fixed manufacturing costs, but this growth was partially offset by foreign exchange rates which led to higher cost of sales and product and market mix. Research and development expenses decreased USD 62.0 million, or 27%, due to the absence of Polestar 1 amortisation.

Despite these gains, operating loss increased USD 291.5 million, or 29%, impacted by a Q2 2022 one-time share-based listing charge of USD 372.3 million. However, adjusted operating loss decreased USD 80.8 million, or 8%, benefiting from higher gross profit and active cost management. The company anticipates global volumes to increase by nearly 60% to approximately 80,000 cars, predominantly driven by Polestar 2 sales.

The company expects gross margin to be broadly in line with 2022, with volume and product mix supporting margin progression later in the year. While liquidity has strengthened, including a cash balance of approximately USD 1 billion as of December 31, 2022, Polestar continues to explore potential equity or debt offerings to raise additional capital to fund operations and business growth.

Polestar made several major announcements in the early months of 2023. In early January, the company announced that its vehicles will benefit from the latest enhancements and developments by Google, including the new HD map that will debut in Polestar 3, and the roll-out of remote actions for Polestar 2. The company also showcased Polestar 3 for the first time in the US at CES 2023 in Las Vegas, together with Smart Eye, supplier of premium driver monitoring technology which is included as standard.

In late January, Polestar announced a major update to Polestar 2 for the 2024 model year, featuring a new high-tech front end that reflects the design language premiered by Polestar 3, substantial performance increases with all-new electric motors, even more powerful batteries, longer range, sustainability improvements and, for the first time in a Polestar, rear-wheel drive.

In February, Polestar signed up eight additional sustainability partners to the ambitious Polestar 0 project – to create a truly climate-neutral car by 2030 – bringing the total to 24, as well as initiated a collaboration with Rivian on the Pathway Report in response to the climate crisis. The Company also announced Polestar 3 with Luminar LiDAR is available to order, and an expanded partnership with Luminar to work on the integration of LiDAR in Polestar 5.

Also Read: NIO announces Feb 2023 vehicle delivery results.

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