EV maker Polestar's Q4 loss narrows, won't engage in price wars

Brilliance China Automotive Holdings

02/03/2023 12:00

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      CEO says no price cuts on cars
    

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      Reaffirms 80,000 cars in 2023
    

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      Sees upcoming year as more normal
    

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      Fourth quarter operating loss narrowing
    

  
    By Marie Mannes
       March 2 (Reuters) - Electric vehicle (EV) maker Polestar
 PSNY.O  on Thursday posted a smaller quarterly loss, maintained
its 2023 production outlook and said it would not engage in
price wars while weakening demand has forced some rivals to
scale back output. 
    This year is proving to be a tough one for EV makers, as a
Tesla-ignited price war and continued supply chain bottlenecks
further strain start-ups hoping to benefit from the shift to
EVs. 
    While some carmakers have followed Tesla's lead and cut EV
prices, Polestar says it has no intention of doing so, taking
the same stance as former parent company Volvo Cars
 VOLCARb.ST .
    "We will not engage in a price war...we are aiming to become
a very premium sportscar company...," chief executive Thomas
Ingenlath told Reuters. "It's very clear that this is a
completely different aim from where Tesla is going, with 20
million cars per year."
    Demand for electric cars has weakened for U.S. EV startups
Rivian  RIVN.O  and Lucid  LCID.O , with both carmakers
forecasting 2023 production well below analyst estimates.
    But Polestar reaffirmed the 2023 production outlook it gave
in January of 80,000 cars, up from the roughly 51,000 it
delivered in 2022. 
    Ingenlath said he saw supply chain issues that have hampered
global auto production easing in 2023, and 2022 has left the
carmaker with a strong order book. 
    "This year will be a little bit more normal," he said. 
    The Swedish carmaker, founded by China's Geely  0175.HK  and
Volvo Cars, posted a fourth quarter operating loss of $204.7
million, down from $337.3 million a year ago. The company
reported a gross profit of $61.9 million versus a loss of $0.2
million in the same quarter in 2021.
    The U.S-listed company said it expected its gross profit for
2023 to broadly be in line with the $119.4 million it reported
for 2022. 

 (Reporting by Marie Mannes;Editing by Elaine Hardcastle)
 ((Marie.mannes@thomsonreuters.com))