Polestar delays SUV release to 2024, cuts workforce by 10%

On May 11, Swedish EV maker Polestar trimmed its full-year production guidance to between 60,000 and 70,000 vehicles, claiming that its Polestar 3 SUV will be delayed until 2024 due to software issues. 

The company also announced that it would cut roughly 10% of the workforce to reduce costs. The news came as part of Polestar’s first-quarter earnings report, which revealed that revenue grew to $546 million.

For the first quarter, which ended March 31, the EV maker’s net loss was $9 million, or less than a penny per share, due to a $213.4 million revision in valuation connected to its merger with a special-purpose acquisition firm, a year prior.

The Polestar 3 is slated to be built on a brand-new platform that Polestar and Volvo Cars will share. The company reported that it had “recently been informed” that it would require more time to finish the software for the new platform. The Polestar 3 is expected to launch in the first quarter of 2024.

However, the Polestar 4, a smaller crossover SUV from the same manufacturer, is still scheduled for sale in China in the fourth quarter of 2023 and internationally in early 2024.  

CEO Thomas Ingenlath stated, “We are taking the necessary steps to improve Polestar in the foreseeable future.” Adding, “While manufacturing of the Polestar 3 will begin in the first quarter of 2024, the Polestar 4’s successful introduction last month means that we will now have two competitive offerings in the lucrative market for electric SUVs in 2024. I am confident that we will succeed in achieving our goals for growth and profitability.”