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Polestar PSNY+2.29% on Thursday reported another big quarterly loss, just one day after the electric vehicle firm replaced its longtime chief executive.
The Swedish automaker reported a quarterly operating loss of $242.3 million, a narrower loss from a revised $273.6 million a year earlier. Polestar PSNY+2.29% lost $231.7 million in the prior quarter, compared to a $219.9 million loss during the same time in 2023. Revenue fell by 17% to $574.9 million thanks to “lower global volumes and higher discounts.”
Like others in the industry, Polestar has struggled to become profitable, and has been faced with high costs, missed delivery goals, and weaker than expected demand. Polestar delivered about 13,000 EVs last quarter, an 80% increase compared to the first quarter, but down 18% year-over-year.
And like its competitors, Polestar has its own fair share of funding issues. The automaker said it had secured an extra $300 million in funding through a one-year term loan from a bank in August. It had cash and cash equivalents of $669 million at the end of June, down from $784 million in March.
That comes after co-founder Volvo Cars said it would stop funding the EV maker, although it has continued to receive support from parent firm Geely Auto, a Chinese automaker.
Polestar on Wednesday said it would replace Thomas Ingenlath, who had been CEO since the firm launched in 2017, with Michael Lohscheller, a former executive at Opel and EV firm Vinfast. Lohscheller will take over on Oct. 1.
The automaker is also facing new pressure in the form of tariffs from countries like Canada and the U.S., as well as the European Union, on EVs made in China. Both Canada and the U.S. plan to slap tariffs of 100% on China-made EVs, while the E.U. has proposed increasing tariffs on Geely’s products to 19.3%. Polestar on Thursday told analysts it is constant communication with the E.U. to discuss ways to limit, avoid, or lessen the impact of any new tariffs.
Polestar, which until recently only made vehicles in China, has started making its Polestar 3s in South Carolina at a Volvo factory to help lower the blow of the tariffs. The first vehicles made in the U.S. are expected to make their way into buyers’ hands over the next few weeks, executives said during an earnings call Thursday.
Polestar stock is down by more than 9% in pre-market trading. Shares are fallen by more than 45% so far in 2024.