By Zaheer Kachwala
(Reuters) -Polestar reported a surge in second-quarter sales on Thursday, bolstered by strong demand for its electric vehicles in its home market of Europe, even as it faces challenges in markets such as the U.S.
Shares of the company rose more than 5%.
Demand for Polestar’s EVs has remained resilient in Europe due to offers and discounts, while several other markets have been weighed by high interest rates, inflation and availability of more affordable hybrid or gas-powered options.
The Sweden-based company sold an estimated 18,049 vehicles in the second quarter, it said, a rise of 38% from the same quarter last year.Europe accounts for 76% of the company’s total sales, CEO Michael Lohscheller told Reuters, adding that Polestar remains “laser focused” on the continent.
Lohscheller reiterated the company’s commitment to localize manufacturing as American import tariffs threaten to hike production costs and disrupt global supply chains.
“In a world where you have more and more tariffs, and also changing tariffs… the only way forward is to localize.”
The tariffs have affected Polestar more than most European automakers because the majority of its cars are produced in China, either by Volvo Cars or Geely. Polestar last week said it would make its Polestar 7 SUV model at a Volvo Cars factory in Slovakia in order to minimize exposure to tariffs. Its vehicle sales in the U.S. fell 56% in the second quarter, Lohscheller said, as the country has seen strong competition and reluctance from consumers to splurge on pricey battery vehicles.
U.S. EV makers Tesla and Rivian also reported drops in second quarter deliveries earlier this month. The country’s EV market is likely to see further pressure from the end of a $7,500 tax credit – which has boosted sales in recent years – this fall.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)
