Swedish EV maker Polestar reportedly said on Friday, after months of delays in turning in its financial reports, its 2023 revenue fell and its losses widened as it grappled with slowing demand for its higher priced models.
Reuters noted the tense anticipation leading to Polestar’s earnings announcement was fraught with hurdles, including reduced investment from major backer Volvo Cars slower than expected demand for electric vehicles.
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Reuters said Polestar reported revenue of US$2.38bn for fiscal year 2023, down 3% from $2.45bn from 2022, citing higher discounts and lower sales of carbon credits.
The company reported a gross loss of $414.7m for the year, compared with a gross profit of $98.4m a year earlier.
The report noted the EV maker said after an analysis conducted in 2023, it had to lower the value of its assets related to its Polestar 2 model by $329.7m, resulting in an impairment charge of $240.5m.
Polestar said it incurred a further charge of about $120m due to lower than expected demand in some markets, which led to a drop in the value of its unsold cars.
Net loss widened to $1.17bn in 2023 from $481.5m in the prior year, Reuters reported.
