(Reuters) -Polestar CEO said it would take longer for the Swedish EV maker to be profitable after the company reported it sold fewer cars in 2024 than it had projected, sending the company’s U.S.-listed shares down about 8% in premarket trading.
The company, backed by China’s Geely, has struggled to scale up its business amid weakening demand for electric vehicles and intensifying competition from legacy manufacturers.
Over the past year, Polestar has tried to overhaul its business, including a major management reshuffle with the appointment of industry veteran Michael Lohscheller as CEO, as well as several new executives including head of design, board chair, finance chief and chief operating officer.
Shortly after assuming his role in October, Lohscheller launched a strategic review of Polestar’s business.
The company announced the results of that review on Thursday, saying it expects positive free cash flow after investments in 2027, much later than its previous forecast of 2025-end.
Polestar had previously expected flat revenue for 2024, but now expects a mid-teens percentage decline, and projects negative gross margin. It is expected to report fourth-quarter results on March 6.
The company said on Wednesday it had secured over $800 million last month in 12-month term loan facilities provided by several banks, and that part of this funding will be used to repay old loans.
The new funding will take the company’s current debt to about $4.4 billion, it said.
(Reporting by Akash Sriram in Bengaluru and Marie Mannes in Stockholm; Editing by Shounak Dasgupta)
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