Polestar to cut 10% of workforce as delays push upcoming SUV to 2024

Swedish electrical conveyance shaper Polestar connected Thursday trimmed its full-year accumulation guidance, saying that its upcoming Polestar 3 SUV volition beryllium delayed until 2024 due to the fact that of bundle issues.

The institution besides said it volition chopped astir 10% of its workforce to trim costs. Shares were down implicit 11% successful midday trading pursuing the news.

The quality came arsenic portion of Polestar's first-quarter net report.

For the play ended March 31, Polestar's nett nonaccomplishment was $9 million, oregon little than a penny per share, acknowledgment to astir $213.4 cardinal successful affirmative changes successful the valuation of immoderate of Polestar's obligations related to its merger with a special-purpose acquisition company past year. A twelvemonth ago, the company's nett nonaccomplishment was $274.5 million, oregon 14 cents per share.

On an adjusted basis, excluding the accounting changes, the institution mislaid $222.4 cardinal successful the period, oregon astir 10 cents per share.

Revenue grew to $546 cardinal from $452.2 cardinal a twelvemonth earlier.

Polestar had $884.3 cardinal successful currency remaining arsenic of March 31, down from $973.9 cardinal arsenic of the end of 2022.

Polestar chopped its full-year accumulation guidance to betwixt 60,000 and 70,000 vehicles successful 2023, down from 80,000 successful its earlier outlook, due to the fact that the motorboat of the upcoming Polestar 3 SUV volition beryllium delayed until 2024. The institution had primitively planned to statesman deliveries of the exemplary successful China earlier the extremity of this year.

The Polestar 3 volition beryllium based connected a caller level shared by Polestar and Volvo Cars. Polestar said it was "recently informed" that much clip volition beryllium needed to finalize bundle for that caller platform. It present expects to statesman shipping the Polestar 3 successful the archetypal 4th of 2024.

The company's different upcoming caller model, a smaller crossover SUV called Polestar 4, is inactive connected way to motorboat successful China successful the 4th fourth of 2023, and elsewhere successful aboriginal 2024.  

"We are taking indispensable steps to fortify Polestar successful the near-term," CEO Thomas Ingenlath said. "While accumulation of Polestar 3 volition present commencement successful the archetypal 4th of 2024, the palmy motorboat of Polestar 4 past period means that we adhd 2 beardown offers successful the charismatic electrical SUV marketplace successful 2024. I americium assured that we volition present connected our maturation ambitions and way towards profitability."