Proactive Investors - Swedish electric vehicle (EV) manufacturer Polestar (NASDAQ:PSNY) has reported a slump in deliveries over the first quarter as the sector grapples with slowing demand.
Some 7,200 vehicles were delivered over the first three months of the year, the firm reported on Thursday, down 40% on the 12,076 sold over the same period in 2023.
According to the carmaker, the rollout of its new luxury SUV Polestar 3 and 4 models will contribute to strong margin and revenue progression later in the year.
Production has begun in China, Polestar added, and is set to spread to the likes of the US and South Korea as the year goes on.
“2024 is a transitional year, as we move from being a one-car brand during the first half of the year, to ramping up deliveries of our two luxury SUVs during the second half,” chief executive Thomas Ingenlath commented.
Polestar also said it had recently secured US$950 million in new external funding to support its growth plans.
However, the slump in deliveries comes as rivals, including Tesla Inc (NASDAQ:TSLA, ETR:TL0), have struggled in the face of sluggish demand growth for EVs, alongside increasing competition from Chinese manufacturers.
Bank of America (NYSE:BAC) analysts warned on Wednesday that such pressures were likely to persist throughout the year, as traditional manufacturers enjoy a stronger performance.