Swedish EV Polestar said it will not lower prices like others

GOTHENBURG, Sweden: Electric vehicle (EV) maker Polestar said it would not engage in a price war, despite declining demand forcing some of its rivals to curb output, stressing that it will maintain its 2023 production plan.

It also announced a lower than expected quarterly loss.

In 2023, Tesla ignited a price war, even as ongoing supply chain issues are placing further pressure on EV start-ups, which aim to benefit from the shift to EVs.

In an interview with Reuters, Polestar chief executive Thomas Ingenlath said, "We will not engage in a price war...we are aiming to become a very premium sportscar company. It is very clear that this is a completely different aim from where Tesla is going, with 20 million cars per year."

Rival US EV startups Rivian and Lucid both forecasted their 2023 production well below analyst estimates, but Polestar reaffirmed its commitment to its 2023 production plan, released in January, of 80,000 cars, up from some 51,000 it delivered in 2022.

Supply chain issues have hampered global auto production in 2023, and 2022 has left Polestar with a strong order book, Ingenlath said, adding, "This year will be a little bit more normal."

The company reported a gross profit of $61.9 million, versus a loss of $0.2 million in the same quarter in 2021, adding that it expects its gross profit for 2023 to be in line with the $119.4 million it reported for 2022.