Swedish electric vehicle maker Polestar announced on Friday a decline in revenue and widened losses for 2023, reflecting challenges in the high-end electric vehicle market.
Shares of Polestar, listed in the U.S., fell 3.1% to 80 cents following the announcement, bringing its year-to-date decline to over 63% as of Thursday’s close.
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The anticipation leading to Polestar’s earnings report was filled with obstacles, including reduced investment from major backer Volvo Cars and slower-than-expected demand for electric vehicles.
Polestar plans to release its first-quarter results and second-quarter volumes on July 2 before the market opens.
The electric vehicle market has been impacted by factors such as range anxiety, higher interest rates, and the attractiveness of lower-priced hybrid vehicles, contributing to subdued consumer demand.
The company had postponed several quarterly financial reports due to accounting issues in 2021 and 2022, which were rectified in its 2023 annual results.
For the fiscal year 2023, Polestar reported revenue of $2.38 billion, down 3% from $2.45 billion in 2022, citing higher discounts and reduced sales of carbon credits. The company reported a gross loss of $414.7 million, compared to a gross profit of $98.4 million in the previous year.
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Following an evaluation in 2023, Polestar reduced the value of assets related to its 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 weaker-than-anticipated demand in certain markets, leading to a decrease in the value of unsold inventory.
Polestar’s net loss widened to $1.17 billion in 2023 from $481.5 million in the prior year.