(Yicai) July 3 -- Polestar Automotive Holding said its revenue dropped in the first three months of this year due to falling global vehicle sales and discounts related to inventory management, but the Swedish electric carmaker expects income to have surged last quarter thanks to a jump in deliveries.

Revenue fell 36 percent to USD345.3 million in the three months ended March 31 from a year earlier, Polestar, owned by Volvo Cars and its parent firm China's Geely Automobile Holdings, said in an earnings report yesterday. Net loss widened to USD274 million from USD37.7 million.

Polestar's deliveries soared 80 percent to about 13,000 units in the second quarter from the prior one, when they had fallen 40 percent from a year earlier, the company noted. Shipments mainly surged in the United States, Sweden, Norway, and Germany, it added.

In this January and May 2023, Polestar announced plans to cut 450 and 300 employees and stop recruitment to cope with performance challenges. According to its first-quarter financial report, it has laid off the workers.

Polestar had said that downsizing this year will not affect the Chinese market, but a rumor said the carmaker will start mass layoffs in China. It has not replied to Yicai yet when contacted for a comment.

Shares of Polestar [NASDAQ: PSNY] closed 1.2 percent lower at 90 US cents apiece in New York yesterday. The stock has dived over 90 percent since the firm was listed on June 24, 2022.

Polestar's share price has remained below USD1 for 29 straight trading days. According to Nasdaq rules, companies that close below USD1 for 30 straight trading days will receive a delisting notice, with firms having 180 days to meet a requirement of maintaining a closing price of over USD1 for 10 consecutive trading days to avoid delisting.

Established in 2017, Gothenburg-based Polestar produces in China mainly for the European and North American markets.

Editor: Martin Kadiev