242 million USD

Even though it’s less than a year ago, Volvo spin off Polestar has booked another monster loss in the 2nd quarter of 2024.
242 million US Dollars was the loss in those 3 months. Revenue dropped 17 % to 512 million dollars.

The reasons for this are multiple. First of all are fiscal stimuli in most European countries being downgraded. Which isn’t good news for the future.
Then there’s the competition from China that is getting bigger and better.
And then there’s the mindset shift from ghe people to save more due to high inflation.

Higher discounts

Polestar sold 13000 cars, and had to do that with higher discounts to keep revenue up.
Effect of all this is the dropping stock price of Polestar, which “forked” from Volvo Cars just about two years ago. Polestar has lost 90 % of its share price and market capitalisation. Which of course doesn’t attract new investors either.

Electric vehicles are far from the benchmark

This news and the drop in sales of Tesla and the shift of market leaders likd Toyota back to combustion engines shows that the electric vehicle is far from being the benchmark.
They are still way too expensive compared to hybrid and combustion engine cars, and the range is still too short. Maximum 400 kilometres before another charge doesn’t attract customers…

Time will tell, but my guess is the combustion engine is here to stay.

Sincerely,

Pele23