In connection with growing demand, electric vehicle manufacturer Polestar proudly announced on Thursday that its revenue nearly doubled in the first six months of 2022. However, if material costs continue to increase, Polestar may need to put up prices even further, as per Reuters.
“We continue to have a very strong order book,” Chief Financial Officer Johan Malmqvist told Reuters. “In regards to inflationary pressures, we have increased prices and that is something that we are closely monitoring to see if there’s a need to take additional actions to protect our margins.”
The company has showcased solid growth this year. For the first six months that ended on June 30, Polestar reported sales of $1.04 billion, up from $534.8 million last year. Impressively, Polestar has sold automobiles in 25 nations as of the end of June, a significant increase from just 19 nations the previous year.
For those unaware, Polestar is jointly owned by Volvo and its China parent company, Geely. Now, the Swedish automotive brand Polestar declared that it intends to deploy 50,000 EVs by the end of this year.
Polestar merged with a special-purpose acquisition company (SPAC) and went public on the Nasdaq in June. Despite its recent success, it is worth noting that the company entered new markets this year, resulting in a net loss of $502.7 million from January to June, up from a loss of $368.2 million last year.
Notably, a $372.3 million non-cash charge for the company’s Nasdaq listing was disclosed. According to Malmqvist, the corporation had $1.4 billion in cash at the end of the first half.
Meanwhile, Polestar’s deliveries drastically increased by over 125% in the first half of the year, from 9,510 cars to around 21,200.
Indeed, the demand for EVs has increased as more nations strive for net-zero carbon emissions and gas prices climb. In response to the supply chain constraints and increased costs of component and battery materials, automakers have been frantically trying to expand output.
Since consumer demand continued to increase, many automakers were forced to increase vehicle pricing. However, others worry that rising inflation and economic instability may eventually hurt sales.
Nonetheless, Polestar remains dedicated to increasing its commercial sales. In October, Polestar 3 will make its premiere as an electric performance SUV. Additionally, it unveiled a roadster concept car known as the Polestar 6, for which the manufacturer claims all 500 available manufacturing slots have already been taken.