Swedish electrical automobile maker Polestar on Thursday trimmed its full-year manufacturing steerage, saying that its upcoming Polestar 3 SUV shall be delayed till 2024 due to software program points.

The corporate additionally stated it is going to lower about 10% of its workforce to cut back prices. Shares had been down over 4% in premarket buying and selling following the information.

The information got here as a part of Polestar’s first-quarter earnings report.

For the interval ended March 31, Polestar’s internet loss was $9 million, or lower than a penny per share, because of about $213.4 million in optimistic modifications within the valuation of a few of Polestar’s obligations associated to its merger with a special-purpose acquisition firm final 12 months. A 12 months in the past, the corporate’s internet loss was $274.5 million, or 14 cents per share.

On an adjusted foundation, excluding the accounting modifications, the corporate misplaced $222.4 million within the interval, or about 10 cents per share.

Income grew to $546 million from $452.2 million a 12 months earlier.

Polestar had $884.3 million in money remaining as of March 31, down from $973.9 million as of the top of 2022.

Polestar lower its full-year manufacturing steerage to between 60,000 and 70,000 automobiles in 2023, down from 80,000 in its earlier outlook, as a result of the launch of the upcoming Polestar 3 SUV shall be delayed till 2024. The corporate had initially deliberate to start deliveries of the mannequin in China earlier than the top of this 12 months.

The Polestar 3 shall be primarily based on a brand new platform shared by Polestar and Volvo Vehicles. Polestar stated it was “not too long ago knowledgeable” that extra time shall be wanted to finalize software program for that new platform. It now expects to start delivery the Polestar 3 within the first quarter of 2024.

The corporate’s different upcoming new mannequin, a smaller crossover SUV known as Polestar 4, continues to be on monitor to launch in China within the fourth quarter of 2023, and elsewhere in early 2024.  

“We’re taking obligatory steps to strengthen Polestar within the near-term,” CEO Thomas Ingenlath stated. “Whereas manufacturing of Polestar 3 will now begin within the first quarter of 2024, the profitable launch of Polestar 4 final month signifies that we add two sturdy affords within the engaging electrical SUV market in 2024. I’m assured that we are going to ship on our progress ambitions and path in the direction of profitability.”