Geely-owned Polestar has posted a narrower loss in the second quarter of the year as its sales ramp-up and recover from recent parts shortages.

The Sweden-based start-up EV maker posted a Q2 operating loss of $274 million, down from $627 million a year ago. Q2 revenues were up 16% to $685 million from $589 million in the same quarter of last year.

Polestar delivered 15,765 vehicles during the second quarter, a growth of 36% compared to last year. With record global deliveries of 27,841 for the first six months (up 31% on last year), Polestar still expects to deliver 60,000-70,000 vehicles and a gross margin of 4% in 2023.

Thomas Ingenlath, Polestar CEO, said: “We achieved record volume growth during the second quarter. Deliveries of our significantly upgraded Polestar 2 are now ramping up. With Polestar 4 expected to start production in November and Polestar 3 in the first quarter of next year, we are entering an exciting phase of higher volumes and value from our expanded model range.”

Polestar recently announced that it is working with Mobileye on autonomous driving tech for the Polestar 4 for China.