Swedish EV maker Polestar (PSNY) said it expects to hit the lower end of its 2023 delivery target on Wednesday. Despite the lower expectations, Polestar says new EV launches will drive up demand. Its first electric SUV coupe, the Polestar 4, begins production next week.
Polestar lowers 2023 delivery goal
Polestar delivered 13,976 vehicles in the third quarter, up 51% year-over-year. However, the number is down from 15,800 in the second quarter.
The YOY growth comes amid the Polestar 2 rollout, including the recently launched upgraded 2024 model.
Polestar expects the higher-priced model to help improve models going into the end of the year. Although higher deliveries pushed revenue up to $367.7 million (+25%) in Q3, increased costs led to gross profits slipping 63% to $36.3 million.
Higher expenses in the quarter led to an operating loss of $261 million, up 33% compared to last year. Meanwhile, gross profits fell to 3.6% from 4.1% last year.
Polestar expects to hit the lower end of its 2023 delivery target with around 60,000 vehicles. The EV maker had already slashed its target in May from 80,000 to between 60,000-70,000.
2024 Polestar 2 (Source: Polestar)
Due to the lower delivery expectations, Polestar says gross margins will be around 2% for the year, down from 4%.
The company said it was cutting costs to improve efficiency. Polestar had $951.1 million in cash at the end of September. However, it secured another $450 million in loans from its top two investors, Volvo and Geely.
New EV models to accelerate demand
Despite the lower near-term expectations, Polestar expects the launch of new electric models to drive up demand.
The company’s first electric SUV coupe, the Polestar 4, will begin production next week. Polestar will start delivering the new EV to customers next month.
Meanwhile, the Polestar 3 electric SUV is “on track” to begin production in China in early 2024 and over the summer in the US. The company said its electric SUV recently completed hot weather testing in the UAE.
The Polestar 3 is “better positioned” for the US market, according to CEO Thomas Ingenlath. Polestar’s electric SUV (launch edition) will start at $83,900 in the US with up to 300 miles range.
Polestar 3 (Source: Polestar)
Powered by the same platform as the new Volvo EX90, the Polestar 3 will be available in two trims – a long-range dual motor and a performance pack version. Both will use a 400V battery with 111 kWh capacity.
Polestar will continue developing the brand, focusing on increasing volume and profitability. With four models expected (including the Polestar 5), the EV maker aims to deliver around 155,000-165,000 vehicles.
By mid-decade, Polestar expects gross profit margins in the high teens. The company says an improved offering of vehicles and additional measures will help boost profitability.
Polestar also teased a new plant on the company’s earnings call that would not be in China but didn’t specify where.
Electrek’s Take
With one fully electric vehicle currently, Polestar expects to hit the lower end of its delivery target this year.
Meanwhile, the EV maker expects new launches, including the Polestar 3 and 4, to increase demand. So is it an EV demand problem, or is it that Polestar doesn’t have models in the right segments yet?
Polestar said it will continue a “targetted approach” with EV models like the Polestar 3 aligning with the US market.
Other EV makers have reported mixed results. Although Lucid also lowered its target, Rivian raised it for the second time this year. Again, is it the market, or is it the models?
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Steer-by-wire is an automotive concept that has been around for a long time, but hasn’t yet reached mass adoption. The idea is to replace (or supplement) mechanical linkages between the steering wheel and the wheels with electronic actuators instead.
There are a number of potential benefits to this, like allowing more customizability or adaptability to a steering system, reducing mechanical complexity, or adding speed-sensitive variable steering ratios.
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Although there are also disadvantages, like a reduction in steering feel (although, since most cars are moving to electronic power steering, that was already gone anyway).
But few cars have implemented steer-by-wire systems, or at least not fully committed to them, given that mechanical steering racks are a relatively solved problem and the general inertia of the car industry which would rather stick with a solution they know than switch to something better (haven’t we here, at this EV publication, heard *that* one before…). There’s also the matter of regulations, which have often been written to require mechanical steering systems, and may need updating to allow for steer by wire.
But, steer by wire made it into mass production with the release of the Tesla Cybertruck. This was big news when Tesla committed to this – at the time, it was the only thing on the road to exclusively use a steer by wire system, though there are other cars with partial steer by wire (for example, mechanical front wheel steering, and steer by wire rear-wheel steering).
But it seems to have opened the floodgates, as a number of other companies are working on or have since released steer by wire systems (Lexus, for example).
And now, it looks like Rivian is one of those companies – though we don’t know if it’s for the front or rear. (Update: Well, now we know, it looks like they are at the very least developing a rear-wheel steering system, according to another job listing. Though the company might still be working on steer-by-wire for the whole vehicle, too)
So – we know they’re working on steer by wire, to some extent.
But a few other EVs, particularly large EVs like the Rivian R1 platform is, use steer by wire just for the rear wheels – for example the Hummer EV and Rolls-Royce Spectre. These systems are particularly helpful for giant vehicles, because it allows them to be more nimble and make turns that otherwise would require a lot more… negotiation in a giant land yacht.
So it’s possible that Rivian is only working on rear wheel steer by wire here, but we’d like to think there’s a chance it’s working on steer by wire for the full vehicle.
We also don’t know if this would show up on all of Rivian’s vehicles, or only on certain models – the R2 and R3 are in development, with R2 in pretty late stages, and the R1 just got a big refresh. But, perhaps even more interestingly (and very speculatively), VW has invested heavily in Rivian for technology help, so we wonder if we might end up seeing this in VW group vehicles, or Scout vehicles eventually…
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Automakers are scrambling to push their EVs out the door before the $7,500 Federal tax incentive for EVs disappears — and BMW is no different, offering aggressive cash back, owner loyalty, and special financing rates on its just-released 2026 model year EVs.
BMW has a history of offering solid loyalty incentive programs on its EVs in early summer to clear the tail-end of the model year and make room for the incoming builds, but CarsDirect is reporting some unusual loyalty deals from the brand that seem to suggest BMW is keen to capitalize on a spike in EV sales ahead of the Federal tax incentive’s looming cancellation in September.
BMW dealers now have the choice of adding an additional $1,000 loyalty contribution on select 2026 EVs. The i5 and i7 are offered with $1,000 and $4,000 loyalty bonuses, respectively, meaning if you drive a BMW and your dealer opts to tack on the extra bonus, you could save $5,000 on a 2026 i7. These loyalty programs are good when buying or leasing.
There’s also a $1,000 conquest bonus available for drivers of eligible EVs and PHEVs from other brands. This program is stackable with other offers.
Like other EV brands offering huge lease incentives, BMW customers will see the largest rebates on new BMWs when leasing. Now through September 30th, 2026 BMW i5, i7, and iX models are available with a stout $9,900 lease credit, while the bigger BMW XM comes in with a slightly lower, but still substantial $7,500 lease incentive.
Big deals on big BMW i7 sedan
BMW i7, via BMW.
People who prefer to own their vehicles once the payments are up can still score a great deal on an objectively excellent 2026 BMW i7 luxo-cruiser, thanks to the previously mentioned loyalty bonus if they’re previous customers plus a $7,500 Loan Credit that anyone can get when financing their new i7 with the brand’s captive financing company. BMW Bank offers financing rates as low a 3.99% for up to 60 months on the 2026 i5 and i7 sedans, as well as the iX crossover, as well as 4.99% APR 60-month rate on the high-performance XM plug-in hybrid.
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This week, industrial real estate giant Prologis flipped the switch on a rooftop solar project at one of its Franklin Park, Illinois warehouses — the first of 45 such rooftop installations the company plans to deploy in the next two years. Once finished, Prologis’ community solar project will generate up to 82 MW of clean energy!
Co-developed with Illinois utility ComEd and SunVest Solar, the independent power producer, the new rooftop community solar installation in Franklin Park sits atop a 195,000 sq. ft. Prologis logistics center serving a number of local and regional businesses.
Prologis will own and operate the 1.56 MW community solar project, and the energy it generates will serve mostly residential customers, with the minority of the community solar credits created benefiting local businesses.
“We’re proud to join ComEd to officially launch this project, the first of many community solar projects that our energy team is deploying across our Illinois rooftops,” explains Carter Andrus, Prologis’ Chief Operating Officer. “Illinois is one of the fastest-growing solar markets in the country, and we’re excited to help lead its momentum. For us, this is about more than solar panels … it’s about using our scale to make a real difference in the communities where we operate and bring the benefits of clean energy to more people across Illinois.”
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Collaborative effort
ComEd, Prologis, and Sunvest executives; via ComEd.
Prologis is deeply invested in a number of distributer energy resources (DER), including rooftop solar, battery energy storage, and OnDemand Power, a scalable, portable microgrid and power management solution (read: software) designed to provide resilient, backup, and dispatchable energy where and when it is needed across the company’s global portfolio.
With nearly 800 MWs of rooftop solar and energy storage already deployed and 82 more coming from Northern Illinois alone, Prologis is on track to reach its goal of 1 gigawatt by end of 2025. (!)
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