Advertisement
UK markets closed
  • FTSE 100

    8,164.12
    -15.56 (-0.19%)
     
  • FTSE 250

    20,286.03
    -45.77 (-0.23%)
     
  • AIM

    764.38
    -0.09 (-0.01%)
     
  • GBP/EUR

    1.1782
    -0.0022 (-0.19%)
     
  • GBP/USD

    1.2656
    +0.0014 (+0.11%)
     
  • Bitcoin GBP

    49,135.82
    +958.81 (+1.99%)
     
  • CMC Crypto 200

    1,287.72
    +3.89 (+0.30%)
     
  • S&P 500

    5,460.48
    -22.39 (-0.41%)
     
  • DOW

    39,118.86
    -45.24 (-0.12%)
     
  • CRUDE OIL

    81.46
    -0.08 (-0.10%)
     
  • GOLD FUTURES

    2,336.90
    -2.70 (-0.12%)
     
  • NIKKEI 225

    39,583.08
    +241.58 (+0.61%)
     
  • HANG SENG

    17,718.61
    +2.11 (+0.01%)
     
  • DAX

    18,235.45
    +24.85 (+0.14%)
     
  • CAC 40

    7,479.40
    -51.32 (-0.68%)
     

Polestar Loss Deepens to $1.46 Billion Amid Slowing Demand

(Bloomberg) -- Polestar Automotive Holding UK Plc reported deepening losses for last year as the EV maker faced weaker demand amid organizational challenges that delayed its earnings report.

Most Read from Bloomberg

The manufacturer’s operating loss amounted to $1.46 billion, compared with a restated $1.29 billion a year ago, it said Friday. Polestar postponed its earnings report for the year in April because of accounting errors with the delay violating Nasdaq listing rules.

ADVERTISEMENT

The Gothenburg-based company, once in the vanguard of the electric-car movement has lost nearly 95% of its value since spinning out of Volvo Car AB two years ago. Polestar has struggled with cash-burn amid slower-than expected sales.

The shares rose as much as 14 cents to 83 cent in New York trading, valuing the company at $1.74 billion.

Polestar also reported non-cash impairment charges of around $450 million after reassessing the value of its Polestar 2 assets and inventory. In a separate statement, Volvo Cars said the charges won’t have a material effect on its financial results.

The EV maker didn’t disclose an outlook for the year. It previously said its two new SUVs, the Polestar 3 and 4, will help boost sales to more than 155,000 vehicles next year. Currently, Polestar builds a majority of its cars in China.

It’s starting production of the Polestar 3 SUV in South Carolina this summer, following several key regions hiking tariffs on Chinese-made EVs amid growing geopolitical tensions.

The US now charges import levies of 100% while the European Union next week is set to formalize provisional tariffs of as much as 48%. Polestar will also start production of the Polestar 4 Premium Sport SUV in South Korea in the second half of 2025.

The company plans to report first-quarter results and second-quarter sales figures on July 2.

(Adds detail throughout)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.