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Polestar reports decline in 2023 revenue as EV maker grapples with slowing demand

Published 06/28/2024, 08:29 AM
Updated 06/28/2024, 09:42 AM
© Reuters. The Polestar 4 electric SUV is displayed at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024. REUTERS/Brendan McDermid/File Photo
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(Reuters) -Swedish EV-maker Polestar (NASDAQ:PSNY) said on Friday, after months of delays in turning in its financial reports, that its 2023 revenue fell and its losses widened as it grappled with slowing demand for its higher-priced models.

U.S.-listed shares of the company fell 3.1% to 80 cents. The stock has slumped more than 63% this year as of Thursday's close.

The tense anticipation leading to Polestar's earnings announcement was fraught with hurdles, including reduced investment from major backer Volvo (OTC:VLVLY) Cars and slower-than-expected demand for electric vehicles.

Polestar said it will report its first-quarter results and second-quarter volumes on July 2 before the market opens.

Demand for EVs has suffered as range anxiety, higher-for-longer interest rates, and attractive lower-priced hybrid vehicles have weighed on consumer demand.

The company had postponed multiple quarterly financial reports, citing accounting misstatements in 2021 and 2022, and has rectified metrics in its 2023 annual results statement.

Polestar reported revenue of $2.38 billion for fiscal year 2023, down 3% from $2.45 billion from 2022, citing higher discounts and lower sales of carbon credits.

The company reported a gross loss of $414.7 million for the year, compared with a gross profit of 98.4 million a year earlier.

The EV maker said after an analysis conducted in 2023, it had to lower the value of its assets related to its Polestar 2 model by $329.7 million, resulting in an impairment charge of $240.5 million.

© Reuters. The Polestar 4 electric SUV is displayed at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024. REUTERS/Brendan McDermid/File Photo

Polestar said it incurred a further charge of about $120 million due to lower-than-expected demand in some markets, which led to a drop in the value of its unsold cars.

Net loss widened to $1.17 billion in 2023 from $481.5 million, in the prior year.

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