A Polestar 4 electric SUV is on display during the 20th Shanghai International Automobile Industry Exhibition at the National Exhibition and Convention Center (Shanghai) on April 18, 2023 in Shanghai, China.
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Swedish electric vehicle maker Polestar on Wednesday cut its longstanding 2025 deliveries target and said that despite cost cuts, it will still need to raise cash to break even that year.
The company also cut its guidance for the current year.
Shares rose about 3% in after-hours trading.
Polestar said it now targeting a gross profit margin “in the high teens” for 2025, with a total annual volume of roughly 155,000 to 165,000 vehicles. At the time of its initial public offering last year, Polestar was targeting annual sales of about 290,000 vehicles by the end of 2025.
For 2023, Polestar now expects to deliver “approximately 60,000” vehicles, at the low end of its previous guidance range, with a positive gross margin of about 2%. The company had previously guided to deliveries of between 60,000 and 70,000 vehicles in 2023, with a gross margin of 4% for the year.
Polestar’s gross margin was 1.1% in the first nine months of 2023 and 4.9% in 2022. It delivered 51,491 vehicles in 2022.
Polestar also said it is taking additional steps to cut costs. It has received $450 million in new loans from its founding investors, Chinese automaker Geely Automobile Holding and Geely subsidiary Volvo Cars. It now expects it will need additional outside…
