STOCKHOLM — Swedish electric vehicle (EV) maker Polestar lowered its 2023 generation direction on Thursday and stated it would slice headcount by 10%, citing a delayed generation start off for its Polestar 3 and a difficult natural environment for the market.
The automaker said it now expected to make among 60,000 and 70,000 cars this 12 months, vs . the formerly predicted 80,000.
It has been a tough quarter for EV startups, who confront mounting opposition from new Chinese players as properly as from a lot more recognized manufacturers. An ongoing selling price war began by Tesla, in addition to significant interest charges, has place a additional squeeze on the previously cash-strapped startups.
Polestar peers these kinds of as Lucid and Fisker, have each reduce their manufacturing forecasts, with Lucid in March also trimming 18% of its workforce.
Polestar claimed the creation commence of its Polestar 3 would be delayed until the first quarter of 2024 as a substitute of the initial mid-2023 start. The company reported the hold off was thanks to Volvo Autos – which provides its autos and is delaying its personal EX90 – getting to do further more software program enhancement and tests.
Cash and cash equivalents at the conclusion of the 1st quarter had been $884.3 million, in comparison with $973.9 million in the previous a few-thirty day period period. An running decline of $199.4 million was narrower than a decline of $257.9 million a year ago.
Problems of money jogging out have been a prevailing problem with EV startups, wherever numerous gamers have seen their first current market valuations evaporate, with handful of choices for funding in a turbulent economy.
Polestar has mentioned formerly it has adequate cash to see it by means of 2023, right after it been given $1.6 billion in financing in November from its two major shareholders Volvo Autos and Li Shufu-managed PSD Expenditure,
Nonetheless, it will nevertheless have to have additional funding to get by way of the upcoming couple of years.
Shares in U.S detailed Polestar have been down more than 10%.