Polestar Automotive Holding posted another operating loss in the second quarter as the electric-vehicle maker struggled with software delays and intensifying competition.
(Bloomberg) — Polestar Automotive Holding posted another operating loss in the second quarter as the electric-vehicle maker struggled with software delays and intensifying competition.
While revenue surged in the UK and Sweden, it declined in key markets including the US and China during the three months through June, the EV maker said Thursday. Polestar, which is owned by Volvo Car AB and Chinese billionaire Li Shufu’s private investment company, posted a net loss of $304 million.
EV makers throughout Europe are struggling to gain market share amid intense competition from Tesla Inc. and Chinese manufacturers that are selling battery-powered vehicles at substantially lower prices. Polestar’s results show ongoing woes at the company, which has only seen losses since its listing last year, pushing its stock down about 65%. Some shareholders are suing the architects of the listing, saying they were misled about the company’s value.
Read More: Polestar Investors Sue Billionaire Gores on EV Maker’s SPAC Deal
Polestar delivered 15,765 vehicles during the second quarter — 36% more than the same period last year — and kept in place its May forecast that it will deliver as many as 70,000 cars this year. The company is expected to ramp up volumes in the second half of the year, with its production of its Polestar 4 crossover slated to begin in November.
Given the weakness in global markets, Polestar’s confirmation of its previous guidance on deliveries and a 4% gross margin for the full year is a “very strong signal,” Chief Executive Officer Thomas Ingenlath said in an interview. “It’s certainly not an environment where consumers are that easy to convince that they should buy a new car.”
Polestar reiterated that it will need to raise additional funds — possibly by issuing new shares or bonds — to support operations and ensure the company’s solvency. The company has repeatedly said there is “substantial doubt” about its ability to do so.
“We’ve said all along that through the actions we’ve taken, we are funded through the end of this year,” said Chief Financial Officer Johan Malmqvist. “We’re not guiding beyond that, aside from just mentioning that we’re working actively on it together with the two shareholders.”
(Updates with comments from CEO, CFO interviews in fifth and seventh paragraphs. A previous version of this story was corrected after misstating details of the company’s ownership.)
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