By Marie Mannes

(Reuters) – Polestar on Friday posted a smaller third-quarter working loss as income greater than doubled and the corporate minimize spending, however the electrical automobile (EV) maker warned that larger uncooked materials prices would begin to damage later within the 12 months.

The Swedish carmaker, based by China’s Geely and Volvo Vehicles, posted an working lack of $196.4 million, down from $292.9 million a 12 months in the past, whereas income rose to $435.4 million from $212.9 million.

Polestar, which listed on the Nasdaq trade in June through a merger with a special-purpose acquisition firm (SPAC), mentioned rising prices for uncooked supplies used to make its batteries had not but absolutely hit due to set contracts.

Chief Monetary Officer Johan Malmqvist informed Reuters Polestar would face larger prices within the fourth quarter, whereas worth will increase for its vehicles this summer time had been gradual to kick in.

“The total extent of that can then… partly offset the uncooked materials prices,” he mentioned, including that the carmaker anticipated to boost costs additional.

Malmqvist mentioned as a result of a lot of Polestar’s value base is in China, unfavourable trade charges hit the corporate within the third quarter and can proceed within the fourth.

Provide chain bottlenecks, together with a world semiconductor scarcity, have made it more and more tough for carmakers to satisfy targets.

However Chief Govt Thomas Ingenlath mentioned Polestar was on observe to ship 50,000 vehicles in 2022.

The corporate delivered 9,215 autos within the third quarter, whereas deliveries for the primary 9 months of 2022 rose 100% to about 30,400 vehicles.

Ingenlath mentioned the remaining 20,000 vehicles wanted to satisfy its goal have been produced.

“We at the moment are in a reasonably comfy place of ‘solely’ having to ship these vehicles and never fear anymore in regards to the manufacturing”, the CEO mentioned.