Polestar Automotive, the EV start-up born from Volvo, has achieved a significant milestone by producing 150,000 battery-electric vehicles since its inception. Despite facing challenges in surpassing Tesla, the company’s growth remains steady.
In the first half of this year, Polestar (ticker: PSNY) delivered approximately 27,900 vehicles. The company aims to deliver between 60,000 and 70,000 vehicles in 2023, according to its guidance.
Accompanying this manufacturing milestone is the announcement of the commencement of deliveries for the updated Polestar 2 sedan. This new version comes equipped with a larger battery pack, providing a range of 320 miles per charge.
CEO Thomas Ingenlath expressed his satisfaction with the upgraded Polestar 2, stating, “The improved software, enhanced quality, extended range, and faster charging make it the best version to date. It serves as the foundation for our continued business growth.”
In premarket trading, Polestar stock experienced a modest increase of approximately 0.3%. Meanwhile, the S&P 500 and Nasdaq Composite indexes were also showing positive trends, rising about 0.2% and 0.1% respectively.
While any upward movement is positive, Polestar stock, along with other EV start-ups such as Rivian Automotive (RIVN), Lucid (LCID), and Fisker (FSR), has faced recent challenges. Over the past year, Polestar shares have declined by 57%, with Rivian Automotive down 38%, Lucid down 62%, and Fisker down 34% during the same period.
The Changing Landscape for Start-up Companies
Interest rates have posed a challenge for start-up companies that have yet to generate free cash flow. As a result, investor enthusiasm has waned in this sector.
Another factor affecting the industry is the difficulty in matching Tesla’s (TSLA) level of production. Tesla saw a significant increase in sales, with approximately 889,000 vehicles sold in the first half of this year—an impressive 57% growth compared to 2022. In comparison, other electric vehicle (EV) start-ups such as Polestar, General Motors (GM), Ford Motor (F), Stellantis (STLA), Volkswagen (VOW3. Volkswagen), NIO (NIO), Li Auto (LI), and XPeng (XPEV) collectively delivered around 834,000 EVs during the same period—an increase of about 44% from the previous year. Despite this growth, Tesla managed to gain market share over these competitors.
The trend of larger companies dominating the industry is evident, particularly with China’s BYD (1211.Hong Kong) making significant gains against Tesla. BYD delivered approximately 617,000 battery-electric vehicles in the first half of 2023—a remarkable increase of over 90% from the previous year.
When it comes to battery-electric vehicle manufacturing, BYD holds the second spot globally, with Tesla retaining the top position.
