Polestar to chop 10% workforce as delays push upcoming SUV to 2024

polestar 3

Credit score: Pollstar

Swedish electrical automobile maker Polestar on Thursday trimmed its full-year manufacturing steerage, saying that its upcoming Polestar 3 SUV will likely be delayed to 2024 due to software program points.

The corporate additionally mentioned that it might reduce its workforce by round 10% to scale back prices. Shares fell sharply after the information and fell greater than 12% on the day.

The information got here as a part of Pollstar’s first-quarter earnings report.

For the interval ended March 31, Polestar’s web loss was $9 million, or lower than a penny per share, in valuation of a few of Polestar’s obligations associated to its merger with a special-purpose acquisition firm previously at roughly $213.4 million. As a result of optimistic modifications of Yr. A 12 months in the past, the corporate’s web loss was $274.5 million, or 14 cents per share.

On an adjusted foundation, excluding the accounting modifications, the corporate misplaced $222.4 million within the interval, or about 10 cents per share.

Income rose to $546 million from $452.2 million a 12 months in the past.

Polestar had a money stability of $884.3 million as of March 31, down from $973.9 million on the finish of 2022.

Polestar slashed its full-year manufacturing steerage to between 60,000 and 70,000 autos in 2023, down from 80,000 in its earlier outlook, because the launch of the upcoming Polestar 3 SUV will likely be delayed till 2024. The corporate had initially deliberate to begin its deliveries. mannequin in China earlier than the top of this 12 months.

The Polestar 3 will likely be based mostly on a brand new platform shared by Polestar and Volvo Automobiles. Polestar mentioned it was “lately knowledgeable” that extra time could be wanted to finalize the software program for that new platform. It now expects to begin delivery the Polestar 3 within the first quarter of 2024.

The corporate’s different upcoming new mannequin, a small crossover SUV known as the Polestar 4, continues to be on monitor to launch within the fourth quarter of 2023 in China and early 2024 elsewhere.

“We’re taking the mandatory steps to strengthen Polestar for the close to future,” mentioned CEO Thomas Ingenlath. “Whereas manufacturing of the Polestar 3 will now start within the first quarter of 2024, the profitable launch of the Polestar 4 final month means we add two robust choices to the profitable electrical SUV market in 2024. I’m assured that we are going to full our progress Ambitions and the Path To Profitability.”

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