Polestar cuts 450 jobs but keeps a smile

The Sino-Swedish electric vehicle manufacturer Polestar has announced that it is forced to lay off 15% of its staff in a challenging business environment.

It is constantly emphasized that the price war among automakers is a blessing for consumers but a serious threat to smaller companies like Polestar.

The Swedish electric vehicle manufacturer is producing exciting new models but is struggling to gain market share in an economic environment that is weakening, where electric vehicle sales have plateaued after several years of rapid growth. In this context, the company’s sustainability inevitably depends on reducing internal expenses and, unfortunately, the workforce.

Since its initial public offering in the United States in 2022, Polestar has benefited from generous financial support from its Chinese parent company Geely, including a loan of $1.6 billion last year. Disappointing sales in 2023 have undermined the company’s original goal of reaching profitability by 2025. However, the situation is far from dire, and Polestar is doing much better than manufacturers such as Aiways or Lucid. Last year, 54,600 vehicles were delivered, whereas the target was set at 60,000. With Geely juggling other priorities, including electrification of Volvo’s lineup, the revival of Lotus, and the development of Lynk & Co, Polestar is compelled to adopt a frugal plan to ensure its survival.

Nevertheless, optimism remains for 2024, with the European launch of orders for the Polestar 4 at the end of January and the start of production of the Polestar 3 early this year after delays caused by software issues. Stay strong; we’re close to the goal.