Shares of Polestar (NASDAQ:) plunged on Tuesday after the electric vehicle (EV) manufacturer posted a wider-than-expected net loss for the first quarter, despite noting an increase in car deliveries in the second quarter.
The Swedish company reported a net loss of $274.3 million for the three months ended March 31, compared to a loss of $37.7 million in the same period last year. Sales decreased to $345.3 million from $543.4 million.
Shares plunged more than 6% to 86 cents.
Polestar said that momentum picked up in the second quarter, with 13,000 car deliveries, marking an 80% increase from the first quarter. The company expects this momentum to continue in the back half of 2024.
“We expect strong revenue improvement in the second quarter and are confident about our business performance in the latter part of the year,” said Thomas Ingenlath, Polestar CEO.
“Looking further ahead, our model expansion and increased market presence – with seven new market launches to come in 2025 – will be key growth drivers for us.”
However, the EV maker highlighted short-term challenges due to the introduction of import duties and ongoing pricing pressure in global EV markets, particularly in China. To meet cash-flow targets, the company plans to adapt its business strategies, including “implementing additional mitigating actions.”
The company also said its staff reductions announced in January have now been implemented, resulting in 15% fewer positions.
The company expects to provide updated guidance later in the year.
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