Swedish electric vehicle (EV) manufacturer Polestar has announced a decline in its 2023 revenue, citing a drop in demand for its high-end models. The company’s annual revenue fell by 3%, from $2.45 billion in 2022 to $2.38 billion in 2023. Additionally, Polestar reported a substantial increase in losses, with a gross loss of $414.7 million compared to a gross profit of $98.4 million the previous year.
This news comes after Polestar delayed several financial reports, attributing the delays to accounting misstatements from 2021 and 2022. The company has since corrected these errors in its 2023 annual results.
Polestar’s U.S.-listed shares fell by 3.1% to 80 cents following the announcement, continuing a downward trend that has seen the stock lose more than 63% of its value this year.
The company cited several factors for the decline in demand, including consumer concerns over EV range, rising interest rates, and the attractiveness of lower-priced hybrid vehicles. These issues have significantly impacted sales, leading to higher discounts and reduced sales of carbon credits.
Polestar also reported a significant impairment charge of $240.5 million after lowering the value of its Polestar 2 model assets by $329.7 million. An additional charge of approximately $120 million was incurred due to lower-than-expected demand in certain markets, which decreased the value of unsold vehicles.
The company’s major backer, Volvo Cars, has also reduced its investment, adding to the financial strain. Despite these challenges, Polestar plans to release its first-quarter results and second-quarter volumes on July 2, hoping to provide a clearer picture of its financial health moving forward.
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