The Company further stated that " [t]he primary reason for this restatement decision relates to balance sheet errors concerning the Company's unique tooling. . ., which have resulted in an underreporting of assets and accrued liabilities in matching amounts for the[se] periods ." Polestar's announcement continued to disclose that " [m]anagement has determined that certain unique tooling should have instead been recognized as assets under construction ('AUC') according to the progression of work, resulting in a material understatement of AUC and a corresponding understatement of accrued liabilities in the Affected Financials ." The announcement further stated that " [a]s a result of the above noted accounting errors, the Audit Committee, based on the recommendation of, and after consultation with, the Company's management, have further concluded that the Affected Financials should no longer be relied upon ." On this news, the price of Polestar's Class A ADSs fell by 11% on January 16, 2025.