Polestar is digging in for another terrific year

Volvo spinoff Polestar had a tough 2024 and 2025 could be just as tough.

EV manufacturer announced On Thursday, it said it expects to post lower revenue in fiscal 2024 than in 2023, after previously forecasting sales would be flat. That’s thanks in part to “lower-than-expected Polestar 3 and Polestar 4 sales” driven by the global EV price war.

Flagship sales put Polestar under pressure from creditors. one years agothe car manufacturer received a $950 million loan from a syndicate of banks. It was Polestar is supposed to create as part of this loan agreement, it received more than $5.3 billion in 2024.

The company won’t report its final 2024 financials for several more months, but according to Thursday’s guidance, revenue will be well below 2023’s figure of $2.4 billion. (Polestar said investors should expect “a decline in middle-aged interest.”) For its part, Polestar said it was working with its parent company, Chinese conglomerate Geely Holdings, and the banks behind the loan to revise its revenue target.

Polestar also announced Thursday that it must restate all of its financial statements dating back more than two years because of accounting errors related to the tools it uses to make the cars. The company said the assets and liabilities associated with the instrument were underreported and that “other minor errors identified will be corrected as part of this revaluation process.”

All this comes after Polestar was fired in 2024 and appointed a new CEO, CFO and COO. The company was also seen last year. Loses financial support from Volvo.

Polestar is still hopeful that the new models will help boost sales. Polestar 5 is based on a sedan The Sharp Precept concept debuted in 2021 – will start at the end of this year. Polestar plans to expand its sales to France this year.

Polestar also shared Thursday that the upcoming Polestar 7 will be a “premium compact SUV,” entering the popular and lucrative car segment. But the company has to live long enough to reach this model – for which it did not reveal a release date.