Electric vehicle maker Polestar lowers production guidance, cuts jobs

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 (LCID.O) and Fisker (FSR.N), 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 (VOLCARb.ST), posted a first-quarter operating loss of $199.4 million, narrowing from a loss of $257.9 million a year ago.

This report’s information was first seen on REUTERS; to read more, click this link.