Electric vehicle maker Polestar is having a bit of a moment right now. The firm’s sales are on the rise, its range of cars is expanding, and it has now launched in 23 global markets. But, this ambitious growth is about to hit a snag, as the firm has slashed its delivery targets for 2022 due to pandemic problems in China, where every Polestar is currently built.
While announcing its sales for the first four months of 2022, the company alluded to production issues as a result of ongoing Covid-19 lockdowns in China. In a statement, the firm said it had cut 15,000 units from its 2022 delivery targets.
The statement, provided to Jalopnik, reads in part: “As a result of prolonged government COVID-19 lockdowns in China during the first half of 2022, Polestar has now announced a reduction to the number of customer vehicle sales that it will be able to deliver in 2022 from 65,000 to approximately 50,000.”
That’s a hefty cut, and equates to a 23 percent drop in deliveries for 2022.
In recent weeks, cases of Covid-19 have been on the rise in China. In response, leaders in the country have issued strict lockdown orders to prevent social mixing and curb the spread of the virus.
The lockdowns have hit other automakers, including Tesla, where CEO Elon Musk recently praised workers for pulling all-nighters. That was an odd stance to take when employees were reported to be working 12-hour shifts and sleeping on the factory floor to meet targets.
But for Polestar, it sounds like the disruptions in China due to Covid-19 aren’t hampering its long-term goals for growth.
In the same statement, Polestar CEO Thomas Ingenlath said, “The fundamentals driving the growth in sales of electric cars remain in place and the momentum is stronger than the uncertainties we are witnessing right now. Any short- to medium-term economic effects have not dented our goal of selling 290,000 cars in 2025 – 10 times more than we sold in 2021.”
Key to the brand’s growth will be the upcoming Polestar 3 SUV, which the brand says will launch later this year. Due to premiere in October, the new EV will be the first Polestar to be built in the USA.
Also instrumental to Polestar’s chances of reaching its 2025 sales goal is a new deal with rental company Hertz. Earlier this year, Polestar announced a global partnership with the firm to supply 65,000 cars over the next five years.
“We promised growth and we are delivering on that promise,” added Ingenlath.