Polestar (PSNY) losses grow in Q2 amid record deliveries, two new EVs near production
Swedish performance EV maker Polestar (PSNY) reported its Q2 2023 earnings on Thursday, showing widening losses as production scales. Polestar is entering an “exciting” growth phase with two highly anticipated EVs scheduled for production.
Polestar hits record deliveries, but losses widen in Q2
Polestar delivered 15,765 EVs in the second quarter of the year, up 36% YOY. The EV maker has delivered a record 27,841 vehicles through the first half of the year as it ramps manufacturing capabilities.
After lowering its annual production guidance from 80K to between 60K and 70K in Q1, Polestar is sticking to its forecast for the year.
The EV maker posted revenue of $685 million, up from $589 million last year. Through the first six months of the year, revenue reached $1.2 billion, driven mainly by higher Polestar 2 sales.
Meanwhile, higher contract manufacturing costs and supplier chargers for semiconductors and batteries drove Polestar’s cost of sales 30% higher than last year, reaching $686 million, for a gross loss of (-$1 million).
As a result, Polestar’s net loss grew to $304 million, up from a loss of $228 million last year and $9 million in Q1.
The EV maker ended the quarter with $1.06 billion in cash and equivalents, up from $974 million last year and $884 million in Q1.
Thomas Ingenlath, Polestar’s CEO, commented on the growth, saying, “We achieved record volume growth during the second quarter. Deliveries of our significantly upgraded Polestar 2 are now ramping up.”
New EVs coming
The company launched the 2024 Polestar 2 in June, with upgrades including more range, RWD options, enhanced electric motors, and Polestar SmartZone.
Polestar is entering an “exciting” growth phase with two new EV models scheduled for production. Ingenlath said:
With Polestar 4 expected to start production in November and Polestar 3 in the first quarter of next year, we are entering an exciting phase of higher volumes and value from our expanded model range.
The Polestar 3 was initially slated to enter production this quarter but was pushed back until Q1 2024.
Polestar said the delay was due to more time needed “for final software development of the new all-electric platform shared by Volvo Cars.”
The Polestar 3 is the company’s first electric SUV. It will launch in two versions – a long-range dual motor and a performance pack model. Both will have 111 kWh battery capacity.
Polestar’s standard version will feature an expected up to 300 miles range, starting at $82,900. Meanwhile, with 517 hp and 671 lb-ft of torque, the performance model will start at $89,900 with an expected 270-mile range.
The Polestar 4 is an SUV coupe that combines “The aerodynamics of a coupe. The space of an SUV” with “The technology for the electric age.”
Polestar unveiled its SUV coupe at the Shanghai Auto Show in April. The model is scheduled to start production in November with a starting price of around $60,000. Deliveries in China are expected by the end of the year, with overseas markets planned for 2024.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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