(Reuters) -Electric vehicle maker Polestar’s first-quarter sales jumped 76% on Thursday as discounts and offers helped offset stiff competition and an uncertain economic outlook.
It sold around 12,304 vehicles in the quarter, compared with 6,975 vehicles a year ago, when the Swedish company was navigating a rough patch caused by poor demand.
U.S.-listed shares of the company were down around 4% in premarket trading, after surging more than 18% in regular trading on Wednesday.
The sharp rise in vehicle sales suggests Polestar’s promotions have been paying off as consumers look for cheaper options in a highly volatile economic landscape marked by higher interest rates and sticky inflation.
Moreover, the fallout from a global trade war brought on by U.S. President Donald Trump’s sweeping tariffs could drive up automobile prices, leaving customers with fewer choices and higher costs to bear.
“We are monitoring closely and assessing the volatile geopolitical environment and will adapt as needed,” CEO Michael Lohscheller said.
Trump’s decision on Wednesday to pause the hefty duties on dozens of countries has brought some respite to investors reeling from market turmoil, but there is still uncertainty around consumer prices in the long run.
With the tariffs threatening to upend global supply chains, Polestar has also been attempting to shift its production base to the United States and reduce its dependence on China.
It currently manufactures in the U.S. and China and is planning on making the Polestar 4 in South Korea in the second half of 2025.
The company expects to publish its full-year results at the end of the month. Polestar has previously faced delays over having to restate financial statements from earlier years due to errors.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath)
