According to foreign media reports, Swedish electric car maker Polestar released its 2023 financial report, showing a decrease in revenue and an expanded loss due to slowing demand for its high-priced models.
Polestar faced challenges before releasing financial report. Volvo reduced investment. Demand for electric cars lower than expected due to range anxiety, high interest rates, and attractive hybrid cars.
After an analysis in 2023, Polestar had to reduce the value of its assets related to the Polestar 2 model by $329.7 million, resulting in impairment expenses of $240.5 million. Due to lower-than-expected demand in some markets, the value of unsold cars decreased, leading Polestar to incur an additional cost of around $120 million. Against this backdrop, Polestar’s net loss in 2023 expanded to $1.17 billion, compared to $481.5 million in the previous year. Following the financial report, Polestar’s stock price listed in the US fell by 3.1% to 80 cents. As of the close of trading on June 27, the company’s stock price for the year had already dropped by more than 63%. Polestar plans to announce its first quarter performance and second quarter sales before the market opens on July 2.