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Polestar Automotive Holding UK (PSNY)
NASDAQ:PSNY
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Polestar Automotive Holding UK
(NASDAQ:PSNY)
Rating:52Neutral
Price Target:
$1.00
▼(-7.41%Downside)
Positive Factors
Product offering
Compelling EV product with volume inflection near.
Retail expansion
Retail expansion is progressing well and could accelerate growth.
Retail strategy
Plans to add more retail spaces should help accelerate growth.
Negative Factors
Financial performance
EBITDA and FCF break-even are expected substantially later than management anticipates.
Trade and subsidy risks
Risks from Chinese ownership and potential changes to US trade and subsidy policies.
US market challenges
US sales are at risk if unable to comply with the final US ruling prohibiting the sale or import of connected vehicles with sufficient nexus to China.
Polestar Automotive Holding UK (PSNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend YieldN/A
Average Volume (3M)3.32M
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-29.59%
EPS Growth-115.85%
CountryUS
Employees2,547
SectorConsumer Cyclical
Sector Strength68
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.09
Shares Outstanding2,060,462,000
10 Day Avg. Volume3,426,823
30 Day Avg. Volume3,323,256
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)-1.25
Price to Sales (P/S)0.00
P/FCF Ratio-13.78
Enterprise Value/Market Cap2.31
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit-12.02
Enterprise Value/Ebitda-1.59
Forecast
1Y Price Target
$0.78Price Target Upside-27.78% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Polestar Automotive Holding UK Business Overview & Revenue Model
Company DescriptionPolestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.
How the Company Makes MoneyPolestar Automotive Holding UK generates revenue primarily through the sale of its electric vehicles, which are marketed as high-performance, sustainable alternatives to traditional gasoline-powered cars. The company leverages its strategic partnerships with Volvo and Geely to benefit from shared technology, economies of scale, and established distribution networks. Additional revenue streams include after-sales services such as maintenance and repairs, as well as possible software updates and connectivity services for its vehicles. Polestar's focus on sustainability and innovation also enhances its brand appeal, potentially leading to increased sales and customer loyalty.
Polestar Automotive Holding UK Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -0.92%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
Polestar's Q1 2025 results show strong sales and revenue growth with improvements in gross margin and cost efficiency. However, challenges such as paused financial guidance, significant net loss for 2024, and concerns over tariffs in the U.S. market create a mixed outlook.Q1-2025 Updates
Positive Updates
Strong Revenue and Sales Growth
Polestar reported a 76% increase in retail sales and an 84% growth in revenue for Q1 2025 compared to the previous year, driven by sales of Polestar 3 and 4.
Positive Gross Margin Achievement
The company achieved a positive gross margin of 7%, which is a 15 percentage point improvement from the previous year.
Expansion of Dealer Network
Polestar grew its sales points by 33% year-on-year, excluding China, and plans to increase sales points by 75% by 2026.
Improvements in Cost Efficiency
The company reported significant fixed cost reductions and improved adjusted EBITDA loss by 46% to $115 million.
Polestar 3 and 4 Performance
Polestar 3 achieved a five-star Euro NCAP rating and Polestar 4 won 'Car of the Year' in South Korea, with production in South Korea expected to start in the second half of the year.
Negative Updates
Paused Financial Guidance for 2025
Due to uncertainty around international tariffs and government regulations, Polestar paused its financial guidance for 2025.
Challenges in U.S. Market
Concerns about the impact of tariffs on the U.S. market were highlighted, affecting the cost of parts and pricing strategies.
High Net Loss in 2024
Polestar reported a higher net loss of $2 billion for 2024, with significant impairments of $622 million impacting gross loss.
Cash Burn and Debt Concerns
The company has an average cash burn of $100-120 million and a high level of debt, indicating unsustainable financials without improvement.
Company Guidance
In the Polestar Q1 2025 results conference call, the company highlighted significant achievements and strategic initiatives. Retail sales increased by 76% compared to the previous year, and revenue grew by 84%, driven by strong sales of Polestar 3 and 4 models. The company reported a positive gross margin of 7%, reflecting a 15 percentage point improvement. Polestar aims to grow its sales points by 75% by 2026 and has expanded them by 33% in Q1 2025, excluding China. Despite the challenges posed by geopolitical uncertainties and tariffs, Polestar reaffirmed its growth target of 30% to 35% per annum between 2025 and 2027. The company is also focused on reducing costs, improving operational efficiencies, and leveraging its partnerships with GG Group and Volvo Cars. With a cash position of $732 million and secured funding facilities, Polestar is actively pursuing further capital raising to support its growth initiatives.Polestar Automotive Holding UK Financial Statement Overview
Summary
Polestar Automotive is facing significant financial challenges. The company shows consistent financial losses with negative profit margins. The balance sheet reveals high financial leverage and potential solvency risks, while cash flow issues underscore liquidity challenges.Income Statement
Polestar Automotive has experienced a declining revenue trend with a sharp decrease in total revenue from 2022 to 2023. The gross profit margin is negative, indicating the cost of goods sold surpasses revenue. Furthermore, the company has consistently reported significant net losses, leading to a negative net profit margin. EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies in managing expenses relative to revenue.24
Negative
Balance Sheet
Polestar Automotive's balance sheet reveals substantial financial leverage, with a negative stockholders' equity and a high debt-to-equity ratio, indicating greater reliance on debt financing. The equity ratio is negative, further emphasizing the financial risk. The company's assets are heavily burdened by liabilities, reflecting potential solvency issues and increased financial risk for stakeholders.35
Negative
Cash Flow
The cash flow statement indicates a persistent negative free cash flow, highlighting ongoing cash outflows exceeding cash inflows. Operating cash flow to net income ratio shows cash flow challenges in converting revenue into cash. Despite positive financing cash flow, primarily from debt or equity issuance, the company struggles to generate sufficient cash from operations, posing liquidity concerns.28
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.03B | 2.38B | 2.46B | 1.34B | 610.25M |
| Gross Profit | -876.17M | -413.08M | 119.44M | 860.00K | 56.52M |
| EBITDA | -1.67B | -826.89M | -213.10M | -716.10M | -226.89M |
| Net Income | -2.05B | -1.19B | -465.79M | -1.01B | -484.86M |
Balance Sheet | |||||
| Total Assets | 4.05B | 4.12B | 3.94B | 3.31B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 739.24M | 768.93M | 973.88M | 757.93M | 316.42M |
| Total Debt | 5.01B | 3.58B | 1.45B | 825.41M | 436.52M |
| Total Liabilities | 7.38B | 5.38B | 4.08B | 3.19B | 1.97B |
| Stockholders Equity | -3.33B | -1.26B | -133.34M | 122.50M | 580.71M |
Cash Flow | |||||
| Free Cash Flow | -1.35B | -2.45B | -1.80B | -441.83M | -300.76M |
| Operating Cash Flow | -991.21M | -1.89B | -1.09B | -312.16M | -57.05M |
| Investing Cash Flow | -412.56M | -439.40M | -715.97M | -129.67M | -243.71M |
| Financing Cash Flow | 1.42B | 2.10B | 2.09B | 909.57M | 359.64M |
Polestar Automotive Holding UK Technical Analysis
Positive
1.08
Price Trends
1.09
Positive
1.08
Positive
1.13
Negative
Market Momentum
<0.01
Positive
51.20
Neutral
23.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNY, the sentiment is Positive. The current price of 1.08 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.09, and below the 200-day MA of 1.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSNY.
Polestar Automotive Holding UK Risk Analysis
Polestar Automotive Holding UK disclosed 73 risk factors in its most recent earnings report. Polestar Automotive Holding UK reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Polestar Automotive Holding UK Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $28.48B | 27.38 | 12.22% | ― | 10.28% | -29.75% | |
62 Neutral | $16.91B | 10.88 | -7.01% | 2.97% | 1.73% | -25.16% | |
53 Neutral | $16.70B | ― | -15.52% | ― | 50.45% | 49.81% | |
52 Neutral | $2.39B | ― | 94.66% | ― | -29.59% | -115.85% | |
51 Neutral | $14.62B | ― | -53.82% | ― | 0.58% | 35.39% | |
45 Neutral | $6.92B | ― | -50.06% | ― | 40.67% | 3.40% | |
44 Neutral | $8.56B | ― | -240.42% | ― | 23.39% | 3.93% |
* Consumer Cyclical Sector Average
Performance Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.