Swedish electrical automobile maker Polestar on Wednesday lower its longstanding 2025 deliveries goal and mentioned that regardless of price cuts, it should nonetheless want to boost money to interrupt even that 12 months.

The corporate additionally lower its steering for the present 12 months.

Shares rose about 3% in after-hours buying and selling.

Polestar mentioned it now focusing on a gross revenue margin “within the excessive teenagers” for 2025, with a complete annual quantity of roughly 155,000 to 165,000 automobiles. On the time of its preliminary public providing final 12 months, Polestar was focusing on annual gross sales of about 290,000 automobiles by the tip of 2025.

For 2023, Polestar now expects to ship “roughly 60,000” automobiles, on the low finish of its earlier steering vary, with a optimistic gross margin of about 2%. The corporate had beforehand guided to deliveries of between 60,000 and 70,000 automobiles in 2023, with a gross margin of 4% for the 12 months.

Polestar’s gross margin was 1.1% within the first 9 months of 2023 and 4.9% in 2022. It delivered 51,491 automobiles in 2022.

Polestar additionally mentioned it’s taking further steps to chop prices. It has obtained $450 million in new loans from its founding buyers, Chinese language automaker Geely Car Holding and Geely subsidiary Volvo Vehicles. It now expects it should want further exterior funding of about $1.3 billion to get to break-even money circulation in 2025.

“By having taken the required steps to re-work our marketing strategy, we’re decreasing prices and enhancing efficiencies to create a extra resilient and worthwhile Polestar – and decreasing our funding want on the similar time,” CEO Thomas Ingenlath mentioned in a press release.

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

Polestar’s web loss for the third quarter was $155.4 million. A 12 months in the past, Polestar reported a web revenue of $299.4 million, because of an accounting credit score associated to the decline of its inventory value on the time.

Income for the third quarter elevated to $613.2 million from $435.5 million throughout the identical interval final 12 months.

Polestar delivered 13,976 automobiles within the third quarter, up 51% from a 12 months in the past, and a complete of 41,817 automobiles within the first 9 months of 2023.

Polestar had $951.1 million in money and equivalents on the finish of the third quarter, down from $1.06 billion as of June 30.

Polestar confirmed that its upcoming Polestar 3, a big electrical SUV, is on monitor to start manufacturing in China within the first quarter of 2024 and in the US in the summertime of subsequent 12 months. The Polestar 3 is predicated on a brand new platform developed by (and shared with) Volvo Vehicles. It was initially anticipated earlier than the tip of 2023, however delays with the platform’s software program — developed by Volvo — pushed it into 2024.

Manufacturing of the Polestar 4, a smaller crossover SUV, will start in China subsequent week as deliberate, the corporate mentioned. Deliveries are anticipated to start in China subsequent month, and in the remainder of the world early subsequent 12 months. A further mannequin, an upscale sedan known as Polestar 5, is presently anticipated to enter manufacturing in China by the tip of 2024.