Electric vehicle maker Polestar cuts production guidance, jobs

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Electric vehicle maker Polestar cuts production guidance, jobs
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Swedish electric vehicle (EV) maker Polestar lowered its 2023 production guidance on Thursday and said it would cut headcount by 10%, citing a delayed production start for its Polestar 3 and a challenging environment for the industry.

Polestar said the production start of its Polestar 3 would be delayed until the first quarter of 2024 instead of the initial mid-2023 start. The company said the delay was due to Volvo Cars - which produces its cars and isCash and cash equivalents at the end of the first quarter were $884.3 million, compared with $973.9 million in the preceding three-month period. An operating loss of $199.4 million was narrower than a loss of $257.9 million a year ago.

Worries of cash running out have been a prevailing issue with EV startups, where many players have seen their initial market valuations evaporate, with few options for funding in a turbulent economy.from its two biggest shareholders Volvo Cars and Li Shufu-controlled PSD Investment,Shares in U.S listed Polestar were down over 6% in pre-market trading.

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