Polestar Automotive is experiencing a notable surge, with its electric vehicle (EV) deliveries accelerating significantly in the second quarter. The management anticipates even stronger sales as the year unfolds, adding to the company’s positive trajectory.
This upward momentum is boosting the shares of the EV manufacturer, which is predominantly owned by Geely Holding and Volvo. By 1 p.m. ET on Friday, Polestar’s stock had increased by 12.2%, following a previous 13% rise on Thursday. This uptick came after investors digested the company’s earnings report and the announcement of a new CEO.
Launching U.S. EV Production
Starting October 1, Michael Lohscheller, who has previously held CEO positions at traditional car manufacturer Opel and EV startups VinFast Auto and Nikola, will assume the role of Polestar’s CEO. His appointment coincides with the company’s rapid escalation in production volume. The second quarter saw vehicle deliveries jump by 82% from the previous quarter, reaching 13,150 units.
In addition, Polestar has recently manufactured its first vehicle in the United States at a production facility in South Carolina, which it shares with Volvo. This U.S. plant will also serve as a supply source for the European market.
However, it is the second-quarter update that is driving the stock higher. The company reports experiencing “strong momentum, particularly in the USA, Sweden, Norway, and Germany.” Polestar also expressed confidence that sales will strengthen in the latter half of 2024, with a notable uptick in the fourth quarter as interest in its two premium SUV models grows.
By the end of the second quarter, Polestar had approximately $670 million in cash and equivalents. Investors seem optimistic that this financial cushion will be sufficient to support the company as its sales growth continues to build momentum.
