Polestar Automotive Holding’s operating loss widened in the first half as the electric-vehicle maker struggles with rising costs for auto parts and expanding abroad.
(Bloomberg) — Polestar Automotive Holding’s operating loss widened in the first half as the electric-vehicle maker struggles with rising costs for auto parts and expanding abroad.
Polestar, which went public in New York in June, said revenue surged 95% to $1.04 billion on higher vehicle shipments. Still, the manufacturer’s operating loss more than doubled in the period due to the expense of its rapid expansion and a one-time share-based listing charge related to its merger with a blank-check company.
Polestar fell as much as 11%, valuing the company at around $15 billion.
“Polestar expects the effects from product and market mix to continue alongside foreign exchange and input cost inflation,” the company said in a statement. “Vehicle price increases and active cost management will help mitigate some of the impact on gross profit.”
Polestar’s shares have dropped about 40% since pulling off a $890 million merger with blank-check company Gores Guggenheim Inc., in the the biggest climate-tech SPAC deal in the first half. Appetite for startups has waned because of record inflation, rising interest rates and a worsening economic outlook.
Polestar said it had $1.38 billion in cash and cash equivalents as of June 30, up more than 80% since the end of last year. The company has faced criticism that it doesn’t have sufficient funds to cover cash requirements for 2022. Polestar may need to seek the additional funding from its main investors Volvo Car AB and Zhejiang Geely Holding Group Co., analysts at Bernstein said in a note published in June.
READ: EV Maker Polestar Eyes New Funds as Sales Jump 125%
Polestar delivered 21,185 cars in the first half, compared to 9,510 in the year-earlier period. The company is targeting around 290,000 EV sales by 2025. In October, it will enter the sport-utility vehicle segment with the launch of the Polestar 3.
“We are very excited about the upcoming launch,” Chief Financial Officer Johan Malmqvist said in an interview. “This will add an SUV to our car lineup and mark our entry into one of the highest margin and growth segments.”
(Updates with shares in third paragraph.)
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