At the end of last month, Polestar finally released its 2023 financial report, revealing its continuing deterioration in financial conditions and unprecedented financial difficulties. Data showed that Polestar's net loss in 2023 reached a staggering $1.173 billion (about RMB 8.523 billion), far exceeding the loss in 2022.

Meanwhile, according to the recently released first-quarter report for 2024, Polestar's net loss in the first quarter of this year surged to $274 million, compared to $37.694 million in the same period last year.

Under the impact of these two financial reports, the market believes that the situation facing Polestar is quite severe.

However, it rains when it pours. Following the announcement of a 15% global layoff at the end of last year, Polestar is now targeting the Chinese market for layoffs.

Recently, according to multiple media reports, "Before the end of September, Polestar Technology (China) will lay off about 30% of its workforce. The biggest impact will be on employees on the supply side." The reason is that the Polestar Chengdu factory has already been shut down, and production will be transferred to the Polestar Chongqing factory and Geely factory.

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So, what is the relationship between Polestar Technology and Polestar?

Polestar was originally acquired by Volvo and later independently funded by Geely and Volvo. In June 2022, Polestar went public on Nasdaq through a SPAC and delivered 51,000 vehicles globally that year.

Last June, in an effort to reverse its declining trend in the Chinese market, Polestar jointly established a joint venture with Star纪魅族 Group for the Chinese market, namely Polestar Technology, to fully take over Polestar's business in the Chinese market.

At the signing ceremony between Polestar and Star纪魅族 Group, Li Shufu, Chairman of Geely Group, once said, "Polestar still has broader development prospects in the Chinese market. In the current rapid development of electrification and intelligence, the Chinese market is the best touchstone for the development of new energy vehicles. Polestar must adhere to globalization while doing a good job of localization, seizing opportunities in the Chinese local market, doing a good job in technical products, service operations, and enhancing user experience."

However, this move seems to have not yet produced a good effect. In the first quarter of this year, Polestar's global sales were only 7,200 vehicles, a year-on-year decrease of 40%. Based on this rough calculation, in the first quarter of this year, Polestar lost $37,900 for every vehicle sold, equivalent to more than RMB 270,000.

Faced with such a situation, Polestar Technology has embarked on a "rescue" operation, namely appointing mid-to-high-level managers from Geely and Volvo to manage Polestar Technology.

It is reported that in early June, Qin Peiji, deputy general manager of Geely Automobile Group's sales company, was transferred to Polestar Technology to serve as chief operating officer, responsible for the company's sales, channel development, marketing, and other business segments.

Jia Xiaohui, senior director of public relations at Volvo Cars Greater China Sales Company, jumped to Polestar Technology as CMO.

Judging from this, the first major move of the two executives after taking office was layoffs and factory closures, which is also a common practice of many joint-venture automakers and struggling new forces recently.

However, under the dual impact of continuously deteriorating financial conditions and the fiercely competitive Chinese new energy vehicle market, will Polestar be able to achieve what Li Shufu said, "Polestar still has broader development prospects in the Chinese market"? The market will give a clear answer.