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Stockholm: Swedish electric vehicle (EV) maker Polestar cut its 2023 production guidance on Thursday and said it would cut staff by 10%, citing a delayed start of production on the Polestar 3 and a difficult environment for the industry.
The automaker said it now expects to produce between 60,000 and 70,000 vehicles this year, compared to the 80,000 previously expected.
It’s been a tough quarter for electric vehicle startups, which face increased competition from new Chinese players as well as from more established brands. The ongoing price war initiated by Tesla, combined with high interest rates, has added pressure on already cash-strapped startups.
Polestar peers like Lucid and Fiskerboth lowered production forecasts, with Lucid in March also cutting 18% of its workforce.
Polestar said that the start of Polestar 3 production will be delayed until the first quarter of 2024 instead of beginning in mid-2023. The company said the delay was due to Volvo cars – which produces its own cars and delays its own EX90 – has to do more software development and testing.
Cash and cash equivalents at the end of the first quarter were $884.3 million, compared to $973.9 million in the prior three-month period. The operating loss of $199.4 million was lower than a loss of $257.9 million a year earlier.
Fears of running out of money have been a pervasive problem with electric vehicle startups, as many players have seen their initial market valuations evaporate, with few financing options in a turbulent economy.
Polestar had previously said it had enough money to keep it going through 2023, after it received $1.6 billion in financing in November from its largest shareholders Volvo Cars and Li Shufu, which it controls. PSD investmentAnd
However, it will still need more funding to survive the next few years.
Shares in US-listed Polestar fell more than 6% in pre-market trading.
The automaker said it now expects to produce between 60,000 and 70,000 vehicles this year, compared to the 80,000 previously expected.
It’s been a tough quarter for electric vehicle startups, which face increased competition from new Chinese players as well as from more established brands. The ongoing price war initiated by Tesla, combined with high interest rates, has added pressure on already cash-strapped startups.
Polestar peers like Lucid and Fiskerboth lowered production forecasts, with Lucid in March also cutting 18% of its workforce.
Polestar said that the start of Polestar 3 production will be delayed until the first quarter of 2024 instead of beginning in mid-2023. The company said the delay was due to Volvo cars – which produces its own cars and delays its own EX90 – has to do more software development and testing.
Cash and cash equivalents at the end of the first quarter were $884.3 million, compared to $973.9 million in the prior three-month period. The operating loss of $199.4 million was lower than a loss of $257.9 million a year earlier.
Fears of running out of money have been a pervasive problem with electric vehicle startups, as many players have seen their initial market valuations evaporate, with few financing options in a turbulent economy.
Polestar had previously said it had enough money to keep it going through 2023, after it received $1.6 billion in financing in November from its largest shareholders Volvo Cars and Li Shufu, which it controls. PSD investmentAnd
However, it will still need more funding to survive the next few years.
Shares in US-listed Polestar fell more than 6% in pre-market trading.
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