Investing.com -- Polestar (NASDAQ:PSNY) said on Friday that it expects to reach a positive gross profit margin in the fourth quarter, despite a 14% decline in electric vehicle deliveries during the third quarter. The company also said it will carry out a review of strategy and operations.
The Swedish EV maker’s shares, majority owned by China’s Geely, fell more than 5% in premarket trading.
The company has been facing softening demand due to high interest rates, which have pushed consumers toward more affordable hybrid cars. Polestar recently underwent significant leadership changes, appointing a new CEO, head of design, board chair, and CFO.
Newly appointed CEO Michael Lohscheller, in his first public comments since taking the helm on October 1, voiced optimism about the company’s foundation and noted that a strategic and operational review is underway.
Polestar plans to provide a more detailed update on its business and strategy alongside its third-quarter earnings report, set for release on January 16. The company expects full-year revenue to remain in line with last year's $2.38 billion, citing tough market conditions and import duties affecting the automotive sector.
“Polestar has a great foundation to build upon, with access to the best EV technology, a global manufacturing capability and strong support from Geely,” Lohscheller said. “Together with the management team, we are conducting a review of our strategy and operations, to set out a clear path for Polestar’s development.”
“A key to our future success will be the development of our commercial capabilities: going from showing to actively selling cars.”
Polestar also reaffirmed its goal to achieve break-even cash flow by the end of 2024, though at lower volumes than previously expected.
The company delivered 11,900 vehicles in the third quarter, down from 13,900 a year earlier.
In light of current market conditions, Polestar is also in discussions with its club loan lenders, who remain supportive of its loan agreements.