Electric Vehicle Maker Polestar Lowers Production Guidance, Cuts Jobs

Cam White | May 11, 2023

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STOCKHOLM (Reuters) – Swedish electric vehicle (EV) maker Polestar said on Thursday it had lowered its 2023 production guidance and would cut headcount by 10%, citing a delayed production start for its Polestar 3 and a challenging environment for the industry.

The auto maker said it now expected volumes to be between 60,000-70,000 cars this year, versus the 80,000 it had previously predicted.

It has been a tough quarter for EV start-ups, who face mounting competition from new Chinese players as well as from more established brands. An ongoing price war started by Tesla, in addition to high-interest rates has put a further squeeze on the already cash-strapped start-ups.

Polestar peers such as Lucid and Fisker, have both cut their production forecasts, with Lucid in March also trimming 18% of its workforce.

The Swedish carmaker, founded by China’s Geely and Volvo Cars, posted a first-quarter operating loss of $199.4 million, narrowing from a loss of $257.9 million a year ago.

(Reporting by Marie Mannes, editing by Terje Solsvik and Alex Richardson)