Polestar peers such as Lucid and Fisker , have both cut their production forecasts, with Lucid in March also trimming 18% of its workforce.
Polestar said the production start of its Polestar 3 would be delayed until the first quarter of 2024 instead of the initial mid-2023 start. The company said the delay was due to Volvo Cars - which produces its cars and is delaying its own EX90 - having to do further software development and testing.
Cash and cash equivalents at the end of the first quarter were $884.3 million, compared with $973.9 million in the preceding three-month period. An operating loss of $199.4 million was narrower than a loss of $257.9 million a year ago. Worries of cash running out have been a prevailing issue with EV startups, where many players have seen their initial market valuations evaporate, with few options for funding in a turbulent economy. Polestar has said previously it has sufficient funds to see it through 2023, after it received $1.6 billion in financing in November from its two biggest shareholders Volvo Cars and Li Shufu-controlled PSD Investment, However, it will still need further funding to get through the next few years.
Shares in U.S listed Polestar were down over 6% in
pre-market trading.
(Reporting by Marie Mannes, Editing by Alex Richardson and Mark
Potter)
