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Polestar cuts its guidance as it retools its business plan for lower EV sales, higher profits

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Polestar said it is targeting a gross profit margin in the high teens, and deliveries of 155,000 to 165,000 vehicles, in 2025.

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.

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 ofPolestar also said it is taking additional steps to cut costs. It has received $450 million in new loans from its founding investors, Chinese automaker. It now expects it will need additional outside funding of about $1.3 billion to get to break-even cash flow in 2025.

Polestar's net loss for the third quarter was $155.4 million. A year ago, Polestar reported a net profit of $299.4 million,Revenue for the third quarter increased to $613.2 million from $435.5 million during the same period last year.

 

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Polestar cuts its guidance as it retools its business plan for lower EV sales, higher profitsPolestar said it is targeting a gross profit margin in the high teens, and deliveries of 155,000 to 165,000 vehicles, in 2025.
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