News

Polestar Automotive Reports Q2 Sales and Earnings Below Expectations

James L. Flint

• August 31, 2023

Electric-vehicle start-up Polestar Automotive reported lower-than-expected sales and earnings for the second quarter. Despite this, the market remains optimistic, placing more emphasis on future guidance.

In the second quarter, Polestar reported a per-share loss of 14 cents, with sales totaling $685 million. Wall Street analysts had anticipated a per-share loss of 13 cents from sales of $756 million. Comparatively, in the same period last year, sales amounted to $589 million, with per-share earnings at 12 cents.

During Q2, Polestar delivered approximately 15,800 vehicles, bringing the total for the first half of the year to 27,900.

CEO Thomas Ingenlath expressed satisfaction with the company's progress, highlighting the record volume growth achieved in the second quarter. With the production of the upgraded Polestar 2 in full swing and plans for the production of Polestar 4 and Polestar 3 next year, the company expects higher volumes and increased value from its expanded model range.

Polestar maintains its outlook for full-year deliveries, estimating between 60,000 and 70,000 vehicles. The projected gross profit margins for 2023 align closely with Wall Street forecasts at around 4%.

During Q2, cash outflows totaling approximately $480 million were used for business development, a figure similar to the first quarter's cash usage. The company ended the second quarter with approximately $1.1 billion in cash reserves.

The initial market response to these results has been moderate. In premarket trading, Polestar stock only dropped by one cent to $3.82 per share. S&P 500 futures saw a slight increase of about 0.1%, while Nasdaq Composite futures decreased by approximately 0.1%.

Polestar's stock has experienced a decline of around 28% year-to-date and a 51% decrease over the past year. Factors such as rising interest rates and declining car prices have contributed to this dip in investor sentiment.

The management team will conduct a conference call at 8 a.m. Eastern time to further discuss the results. Stakeholders will be keen on learning more about delivery projections and the overall demand for electric vehicles in both the U.S. and global markets.