Swedish EV maker Polestar reported a decrease in 2023 revenue and widened losses due to slowing demand for its higher-priced models. U.S.-listed company shares dropped 3.1% to 80 cents, contributing to a year-to-date slump of over 63% as of Thursday’s close.
Polestar’s earnings announcement followed months of delays and challenges, including reduced investment from major backer Volvo Cars and slower-than-expected demand for electric vehicles. The company cited range anxiety, higher interest rates, and competition from lower-priced hybrid vehicles as factors impacting EV demand.
Polestar will report its first-quarter results and second-quarter volumes on July 2 before the market opens. The company had postponed multiple quarterly financial reports due to accounting misstatements in 2021 and 2022, which have been corrected in the 2023 annual results statement.
For fiscal year 2023, Polestar reported revenue of $2.38 billion, down 3% from $2.45 billion in 2022. The company cited higher discounts and lower sales of carbon credits. The company recorded a gross loss of $414.7 million, compared to a gross profit of $98.4 million the previous year.
An analysis conducted in 2023 led Polestar to lower the value of its assets related to the Polestar 2 model by $329.7 million, resulting in an impairment charge of $240.5 million. Additionally, the company incurred a charge of about $120 million due to lower-than-expected demand in some markets, which decreased the value of its unsold cars.
