The brand has the backing of its two large automotive parents, but Adelmann said they expect Smart to pay back their investments "in the first life cycle" of products, or within six years.

Separately, Polestar CEO Dennis Nobelius said the EV maker is open to partnerships to tackle the challenges of decarbonizing the supply chain.

"If we align with partners and say this is how we decarbonize the supply chain ... we can make an impact ... we would like to team up," Nobelius said, also speaking at the Reuters Automotive Conference in Munich.

Polestar, whose vehicles compete with higher-priced EVs from Tesla Inc. and Chinese brands, lowered its 2023 production guidance last week and said it would cut headcount 10 percent amid a challenging environment for the industry.