EV maker Polestar reported on Monday its first quarter financial results posting an 84% rise in first-quarter revenue and a gross margin of 6.8%, reversing a negative margin of 7.7% in the same period a year earlier.
The Geely-backed electric vehicle maker on Friday released its 2024 annual report, including fourth-quarter results that were delayed last month after the company suspended its financial guidance, citing tariffs and regulatory challenges.
Polestar’s revenue in the first three months of the year jumped 84.2% to 608 million mainly driven by a 76% increase in retail sales to “an estimated 12,304” vehicles.
In a statement, the company said the revenue jump was “driven predominantly by higher volumes and favorable shift in the product mix.”
As of the time of writing, Polestar shares are trading 3.7% higher on Monday’s pre-market session at $1.13. Year to date, the stock is up 3.8%.
Currently, the EV maker is present across 27 markets worldwide and reaffirmed on Monday plans to launch in the French market this summer with Stéphane Le Guevel as country chief.
The sale of higher margin models, such as the Polestar 3 and 4, allowed the carmaker to increase its gross margin from -7.7% in the final quarter of 2024 to 6.8% between January and March.
Net loss also improved from $276 million a year ago to $190 million in the first quarter of the year.
The company said it continues to “work closely with Geely Group on securing new equity and debt funding” while noting that it is “still at an acceptable debt level in relation to its loan covenants.”
“We continue to make great progress, transforming our commercial operations and taking steps to reduce our cost base,” Polestar’s CEO Michael Lohscheller said in a statement.
“The geopolitical environment and market conditions are challenging, but we are on the right track and doing the right things,” Lohscheller added later in the statement.
Polestar said last month continues to target compound annual retail sales volume growth of 30-35% between 2025 and 2027.
