Written by Cláudio Afonso | LinkedIn | X
Following Polestar’s release of its financial results for 2023 earlier today, Volvo Cars has announced that it expects the total net effect on its financial results to be non-material following the company’s stake in Polestar.
Volvo Cars said Polestar’s impairment charges totaling about $450 million were not factored into its full-year 2023 results, as the timing of Polestar’s fiscal year 2023 report meant the impairments were unknown at the time of Volvo’s report.
The automaker, which held a 48.3 percent stake in Polestar by the end of 2023, said it will adjust its second-quarter 2024 results to reflect these impairment charges. Volvo clarified that doesn’t expect a big impact as it reduced its stake to 18 percent in early May.
Volvo Cars increased its global sales by 13 percent in May, with a total of 68,034 cars sold compared to the same period last year. This growth was primarily driven by a surge in sales of fully electric models that increased by 58 percent year on year to 17,064 units globally.
Year to date sales reached 316,559 vehicles, marking a 15 percent increase compared to the same period in 2023.
The overall sales of electrified models, which include both fully electric and plug-in hybrid vehicles, grew by 37 percent compared to the same period last year, comprising 48 percent of all cars sold during the month.
Last month, Volvo Cars announced that has completed the distribution of 62.7 percent of its shares in Polestar Automotive Holding UK PLC to its shareholders in the form of Swedish Depositary Receipts (SDRs).
Earlier this year, Volvo Cars announced the plan to discontinue funding its Polestar electric sports car brand. In early April, the automaker shared that its has decided on the final terms and timetable for the distribution of its stake in Polestar to Volvo Cars’ shareholders.
Written by Cláudio Afonso | LinkedIn | X
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The post Volvo Cars Estimates Non-Material Impact from Polestar’s Financial Results first appeared on EV.