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Q3 net loss widens to $365 million from $323 million a

year ago

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Revenue jumps 36% in Q3

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Tariffs hit margins, lead to higher costs

By Marie Mannes and Zaheer Kachwala

Nov 12 (Reuters) - Polestar said on Wednesday

it would conduct a reverse stock split - reducing the number of

its existing shares while increasing their value - as the

loss-making electric vehicle maker strives to retain its Nasdaq

listing.

The news came as the company, majority-owned by China's

Geely Holding and its chair Li Shufu, reported a

third-quarter net loss of $365 million, compared with a $323

million loss a year earlier.

Shares in Polestar, hit by U.S. tariffs, model delays, debts

and fierce competition, have languished below $1 recently,

prompting Nasdaq to warn it could be delisted from the exchange

for failing to meet its minimum bid price requirement.

A reverse stock split does not change the value of

investors' overall shareholdings in a company.

"As market conditions remain challenging, we continue to

take steps to make our organization and operations more

efficient," CEO Michael Lohscheller said in a statement.

Lohscheller attempted a similar share split during his time

as CEO at now bankrupt EV truckmaker Nikola ( NKLAQ )

While third-quarter revenue rose 36%, Polestar was hit by

costs related to so-called residual value guarantees in North

America. Common in EV leases, these guarantees force Polestar to

cover the gap when resale values fall short of promised levels -

an increasingly costly risk as used EV prices slide.

The company has taken steps to stem losses, replacing its

CEO, cutting costs and shifting to a dealer-focused model while

leaning harder on Europe to offset weak U.S. demand, where

buyers increasingly favour hybrids and gasoline cars.

When unveiling the Polestar 5 GT in September, the company

said it would skip launching in the U.S. and China, two of the

world's most lucrative markets.

Polestar shares have fallen sharply from their $13 closing

price on their debut in June 2022 after a merger with a

so-called special purpose acquisition company.

As well as a weak share price, the company has struggled

with its debt covenants, and has had to negotiate amendments

with lenders to stay compliant.