Swedish EV maker Polestar reported a wider loss in Q2 due to tariffs and price pressure, with a net loss of $1.03 billion. The company slashed the Polestar 3’s value, taking a $739 million impairment charge. Volvo Cars, which produces the Polestar 3, also faced a similar charge due to tariffs and delays.

Polestar stated 77% of sales came from Europe, with only 8% from the U.S. Analysts express concerns about EV demand without incentives and liquidity issues. The company aims for cash flow break-even by 2027, adjusting forecasts due to tariff uncertainties and renegotiating debt covenants.

Facing challenges managing liquidity and debt, Polestar negotiated amendments with lenders and agreed to revise covenants. The company handed over 177 cars as collateral and secured a $200 million investment from Geely owner Li Shufu. While some EV startups struggle, others receive continued funding to sustain operations.

Read more at Yahoo Finance: EV maker Polestar takes tariff hit, reports wider quarterly loss