Polestar, the Swedish brand of electric cars owned by the Chinese giant Geely, has an ambition : to be profitable by 2025. To do this, the brand has put in place a bold strategy, based on two pillars :
- Polestar wants to sell more cars. For this, it is counting on the launch of new models, including the Polestar 3 SUV and the Polestar 4 sedan. These two vehicles should be marketed by the end of 2023.
- Polestar wants to sell its cars more expensive. To do this, it plans to improve the quality of its products and services. It also relies on higher raw material prices, which should enable it to pass some of its costs on to consumers.
A risky strategy
This strategy is risky because it relies on several factors that are not fully controlled by Polestar. Indeed, the brand does not yet know whether it will be able to produce enough vehicles to meet demand. Nor does it know whether consumers will be willing to pay more for its cars.
But Polestar is confident
The brand is confident in its ability to achieve its goals. It recalls that its sales increased by 37% in the first nine months of 2023. It also points out that its margins increased during the third quarter.
Polestar wants to be profitable by 2025 by making volume and increasing margins. This strategy is risky, but Polestar is confident in its ability to succeed.
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