Electrical car model plans to cut back its headcount by 10 % as a part of an effort to chop prices. It should additionally institute a worldwide hiring freeze and it has trimmed manufacturing steering for 2023. Polestar now expects to supply between 60,000 and 70,000 automobiles this yr, down from the earlier determine of 80,000.
The model a delayed begin to manufacturing of the and “the financial surroundings affecting the automotive business” as key causes for the modifications. The electrical SUV is now anticipated to enter manufacturing in early 2024.
Polestar says Volvo (which, as notes, is Polestar’s car producer and largest shareholder) wants extra time for software program growth and testing of the brand new electrical platform. Volvo has delayed the beginning of manufacturing of the for a similar motive. Manufacturing is slated to begin within the first half of subsequent yr.
There aren’t any modifications to the schedule as issues stand. Polestar expects to begin manufacturing of that EV for China within the fourth quarter of this yr and in early 2024 for different markets.
Polestar stated in its newest earnings report that it delivered 12,076 automobiles within the first three months of 2023, a rise of 26 % from a yr earlier. Greater than 100,000 of the model’s automobiles at the moment are out within the wild. rose to $546 million, up from $452.2 million a yr earlier, whereas the online loss for the quarter was $9 million, in contrast with $274.5 million in Q1 2022.
There’s sufficient money within the kitty for Polestar to make it by means of this yr, the corporate beforehand stated. It obtained a $1.6 billion injection from Volvo and fellow main shareholder PSD Funding . Polestar had $884.3 million money readily available as of March thirty first, although it expects to want extra funding over the following few years.
Different nascent EV gamers have additionally been struggling to handle their bills. Final month, Lucid stated it might , accounting for 18 % of the whole workforce. Rivian has additionally greater than 1,000 staff since final summer time.