STOCKHOLM — Swedish electrical automobile (EV) maker Polestar lowered its 2023 manufacturing steerage on Thursday and stated it will minimize headcount by 10%, citing a delayed manufacturing begin for its Polestar 3 and a difficult atmosphere for the business.
The automaker stated it now anticipated to provide between 60,000 and 70,000 automobiles this yr, versus the beforehand predicted 80,000.
It has been a troublesome quarter for EV startups, who face mounting competitors from new Chinese language gamers in addition to from extra established manufacturers. An ongoing value conflict began by Tesla, along with excessive rates of interest, has put an additional squeeze on the already cash-strapped startups.
Polestar friends equivalent to Lucid and Fisker, have each minimize their manufacturing forecasts, with Lucid in March additionally trimming 18% of its workforce.
Polestar stated the manufacturing begin of its Polestar 3 can be delayed till the primary quarter of 2024 as an alternative of the preliminary mid-2023 begin. The corporate stated the delay was on account of Volvo Automobiles – which produces its automobiles and is delaying its personal EX90 – having to do additional software program improvement and testing.
Money and money equivalents on the finish of the primary quarter had been $884.3 million, in contrast with $973.9 million within the previous three-month interval. An working lack of $199.4 million was narrower than a lack of $257.9 million a yr in the past.
Worries of money operating out have been a prevailing difficulty with EV startups, the place many gamers have seen their preliminary market valuations evaporate, with few choices for funding in a turbulent financial system.
Polestar has stated beforehand it has ample funds to see it by way of 2023, after it acquired $1.6 billion in financing in November from its two greatest shareholders Volvo Automobiles and Li Shufu-controlled PSD Funding,
Nonetheless, it would nonetheless want additional funding to get by way of the subsequent few years.
Shares in U.S listed Polestar had been down over 10%.