Electric vehicle brand plans to reduce its headcount by 10 percent as part of an effort to cut costs. It will also institute a global hiring freeze and it has trimmed production guidance for 2023. Polestar now expects to produce between 60,000 and 70,000 vehicles this year, down from the previous figure of 80,000.
The brand a delayed start to production of the and "the economic environment affecting the automotive industry" as key reasons for the changes. The electric SUV is now expected to enter production in early 2024.
Polestar says Volvo (which, as notes, is Polestar's vehicle producer and largest shareholder) needs more time for software development and testing of the new electric platform. Volvo has delayed the start of production of the for the same reason. Production is slated to start in the first half of next year.
There are no changes to the schedule as things stand. Polestar expects to start production of that EV for China in the fourth quarter of this year and in early 2024 for other markets.
Polestar said in its latest earnings report that it delivered 12,076 cars in the first three months of 2023, an increase of 26 percent from a year earlier. More than 100,000 of the brand's cars are now out in the wild. rose to $546 million, up from $452.2 million a year earlier, while the net loss for the quarter was $9 million, compared with $274.5 million in Q1 2022.
There's enough cash in the kitty for Polestar to make it through this year, the company previously said. It received a $1.6 billion injection from Volvo and fellow major shareholder PSD Investment . Polestar had $884.3 million cash on hand as of March 31st, though it expects to need more funding over the next few years.
Other nascent EV players have also been struggling to manage their expenses. Last month, Lucid said it would , accounting for 18 percent of the total workforce. Rivian has also more than 1,000 workers since last summer.