Polestar on track for 50,000 deliveries this year

While many other electric car companies, especially the young ones, struggle to post meaningful profits and are held back by delays, Polestar just joined the likes of Tesla and reported its first profitable quarter in a short time since it became a public company.

Polestar recently announced some strategic cost cutting measures and they are clearly working. The company has focused on perfecting its design, innovation and put sustainability as its main objective. Customers seem to be liking that message a lot, we need to remember that Polestar only became a public company in June this year - 4 months ago.

So far this year, the company delivered 30,424 vehicles with 9,215 delivered in the third quarter alone. This is despite the Covid lockdowns and delays caused by the widespread global issues with supply chains.

With all that seemingly behind, the company is upbeat about its targets and believes it can easily deliver another 20,000 cars before this year is up. If Polestar manages to actually deliver on that promise it would mean over 50,000 cars sold and delivered - all against the odds.

The revenue recorded so far this year stands at $1.48 billion and the company has a $1.6 billion backing secured from Volvo and Geely - its parent companies. Its relationship with Volvo and Geely pays other dividends as well, Polestar has access to a global network of dealerships and service shops established by the other two companies over decades.

For Polestar to expand to new markets it merely means securing some floor space in existing showrooms, marketing campaigns and staff training - no need for new partnerships or expensive property leases and building projects.

Polestar employs asset-light strategy and despite being currently present in 27 markets the company shrunk its operating losses by a third and as a result recorded its first quarterly profit of $299.4 million. The stock reacted pretty much immediately and it currently sits at $5.55 (after hours) with a nearly 21 percent jump on Friday after the good news went public.

With new models in the pipeline - Model 3 announced and coming next year, Model 5 the sporty GT coming in 2024 and Polestar 6 already sold out despite not hitting the road until 2026 - the news is all good for the former Volvo in-house performance division.

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