What happened 

Shares of the Swedish electric vehicle maker Polestar Automotive Holding (PSNY -7.75%) were rising quickly today after the company reported third-quarter results that were a significant improvement from the year-ago quarter. 

Management said that it's on track to meet its full-year vehicle production guidance, which added to investors' optimism, helping to push the EV stock up 21.9% as of 11:12 a.m. ET. 

So what 

Polestar said that its revenue more than doubled to $435.4 million, up from $212.9 million in the year-ago quarter. The company's operating loss also improved significantly to $196.4 million, compared to a loss of $292.9 million in the third quarter of 2021. 

A white SUV.

Image source: Polestar.

Polestar's earnings turned positive in the quarter to $0.14 per share -- up from a loss of $1.30 in the year-ago quarter. 

Vehicle deliveries were also humming along nicely. The company said it delivered 9,215 vehicles in the third quarter and noted that it delivered 30,424 vehicles in the first nine months of this year, a 100% increase from the comparable period last year. 

Investors were also likely pleased with management reiterating its guidance of delivering 50,000 vehicles for the full year. 

Now what

Even with today's significant gains, Polestar's stock price is still down 57% since the company went public back in June. 

The EV industry is still reeling from supply chain problems and rising costs, and Polestar CFO Johan Malmqvist told Reuters today that the company will face higher material costs in the fourth quarter. 

All of which means that while the company's latest financial results were moving in the right direction, investors may still want to be cautious about Polestar's stock.