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Polestar Automotive Holding UK (PSNY)
NASDAQ:PSNY
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Polestar Automotive Holding UK
(NASDAQ:PSNY)
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Rating:41Neutral
Price Target:
$1.00
▲(0.00% Upside)
Polestar Automotive's overall stock score is primarily impacted by its poor financial performance, characterized by negative profit margins, high leverage, and liquidity challenges. The technical analysis suggests a neutral to slightly bearish outlook, while the valuation indicates potential overvaluation. Despite some positive developments in the earnings call, the lack of updated financial guidance and ongoing challenges weigh heavily on the stock's prospects.
Positive Factors
Revenue Growth
Significant revenue growth indicates strong demand for Polestar's vehicles, particularly the higher-priced models, enhancing market position and potential for future profitability.
Retail Sales Volume Increase
The increase in sales volume surpassing targets suggests effective market penetration and brand acceptance, supporting long-term growth objectives.
Operational Improvements
Operational efficiencies through cost reductions can improve margins and enhance competitiveness, contributing to sustainable financial health.
Negative Factors
Negative Gross Margin
A negative gross margin highlights cost management issues and pricing pressures, which can undermine profitability and financial stability.
Challenging U.S. Market
Difficulties in the U.S. market limit growth potential in a key region, affecting overall sales and profitability prospects.
High Financial Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and innovation.
Polestar Automotive Holding UK (PSNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.10B
Dividend YieldN/A
Average Volume (3M)5.03M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth-29.59%
EPS Growth-115.85%
CountryUS
Employees2,547
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.32
Shares Outstanding2,060,462,000
10 Day Avg. Volume6,253,211
30 Day Avg. Volume5,026,243
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.67
Price to Sales (P/S)1.09
P/FCF Ratio-1.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.85Price Target Upside-15.00% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
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 generates revenue primarily through the sale of its electric vehicles, including both direct sales and leasing options. The company also benefits from additional revenue streams such as software subscriptions, which enhance vehicle functionalities and user experiences. Moreover, partnerships with established automotive and technology companies, including collaborations for battery supply and charging infrastructure, play a significant role in optimizing production costs and expanding market reach. Government incentives for electric vehicle purchases also contribute to sales, while the growing demand for sustainable transportation solutions bolsters Polestar's market position and revenue potential.
Polestar Automotive Holding UK Earnings Call Summary
Earnings Call Date:Sep 03, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Polestar's earnings call highlighted strong revenue and sales volume growth, operational improvements, and a successful expansion in Europe. However, these positives were countered by significant challenges, including a negative gross margin due to an impairment expense, difficulties in the U.S. market, and the absence of updated financial guidance. The mixed results suggest a balanced outlook with both promising achievements and notable challenges.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue grew by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and an increase in the share of higher-priced Polestar 3 and Polestar 4 models.
Retail Sales Volume Increase
Retail sales volume grew by 51% to over 30,000 cars, surpassing the growth target of 30% to 35% for 2025 to 2027.
Operational Improvements
Polestar achieved operational improvements with a reduction in production costs due to lower material costs, including for batteries, and optimized marketing spend.
Expansion in Europe
Polestar expanded its presence in Europe, signing 26 new retail partners, with Europe now being the main regional market and comprising 77% of sales.
Carbon Credit Sales Boost
Carbon credit sales amounted to $90 million, contributing positively to profitability and aligning with the target of achieving a 3-digit $100 million amount in 2025.
Negative Updates
Negative Gross Margin
Gross margin was negative at 49% due to a $739 million impairment expense for Polestar 3 assets, driven by increased production costs and pricing pressures.
Challenging U.S. Market
The U.S. market is challenging due to tariffs and policy changes, representing only 9% of retail sales, with significant impacts on profitability.
Increase in Net Loss
The net loss for the first 6 months of 2025 was primarily due to the impairment expense, with an adjusted EBITDA loss of $302 million, though narrowed by 30% compared to the previous year.
Withdrawal of Financial Guidance
Polestar did not issue any new financial guidance, reflecting uncertainties and external headwinds impacting the business.
Company Guidance
During the Polestar First Half 2025 Results Conference Call, the company emphasized strong commercial performance with a 51% growth in retail sales volume, surpassing their target of 30% to 35% growth for 2025 to 2027. Revenue increased by 56% to $1.4 billion, driven by higher sales volume and a growing share of higher-priced Polestar 3 and 4 models. Despite these achievements, profitability was impacted by significant external headwinds, including tariffs and mounting pricing pressure, resulting in a negative gross margin of 49% due to an impairment expense of $739 million for Polestar 3 assets. Adjusted gross margin improved to a positive 1.4% from a negative 2.6% year-over-year, and adjusted EBITDA loss narrowed by 30% to $302 million. The company raised $200 million in new equity and secured around $2.1 billion in loan facilities to support operations. Polestar reiterated its target for a compound annual retail sales volume growth of 30% to 35% over 2025 to 2027 but did not issue specific financial guidance.Polestar Automotive Holding UK Financial Statement Overview
Summary
Polestar Automotive is facing significant financial challenges. The company shows a declining revenue trend, negative gross profit margins, and consistent net losses. The balance sheet reveals high financial leverage and potential solvency risks, while cash flow issues highlight liquidity challenges. These factors indicate operational inefficiencies and financial instability.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.07B | 2.03B | 2.38B | 2.46B | 1.34B | 610.25M |
| Gross Profit | -459.79M | -876.17M | -413.08M | 119.44M | 860.00K | 56.52M |
| EBITDA | -1.04B | -1.67B | -826.89M | -213.10M | -716.10M | -226.89M |
| Net Income | -1.42B | -2.05B | -1.19B | -465.79M | -1.01B | -484.86M |
Balance Sheet | ||||||
| Total Assets | 3.83B | 4.05B | 4.12B | 3.94B | 3.31B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 668.91M | 739.24M | 768.93M | 973.88M | 757.93M | 316.42M |
| Total Debt | 3.91B | 5.01B | 3.58B | 1.45B | 825.41M | 436.52M |
| Total Liabilities | 5.65B | 7.38B | 5.38B | 4.08B | 3.19B | 1.97B |
| Stockholders Equity | -1.82B | -3.33B | -1.26B | -133.34M | 122.50M | 580.71M |
Cash Flow | ||||||
| Free Cash Flow | -1.68B | -1.35B | -2.45B | -1.80B | -441.83M | -300.76M |
| Operating Cash Flow | -1.38B | -991.21M | -1.89B | -1.09B | -312.16M | -57.05M |
| Investing Cash Flow | -512.65M | -412.56M | -439.40M | -715.97M | -129.67M | -243.71M |
| Financing Cash Flow | 1.47B | 1.42B | 2.10B | 2.09B | 909.57M | 359.64M |
Polestar Automotive Holding UK Technical Analysis
Negative
1.00
Price Trends
1.08
Negative
1.08
Negative
1.08
Negative
Market Momentum
-0.04
Positive
41.27
Neutral
25.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNY, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.08, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 26.94B | 24.75 | 11.33% | ― | 7.49% | -21.06% | |
55 Neutral | 20.79B | -33.97 | -18.51% | ― | 66.53% | 48.17% | |
51 Neutral | 15.20B | -4.61 | -379.72% | ― | 9.60% | -5.91% | |
49 Neutral | 17.12B | -4.54 | -57.76% | ― | 2.73% | 45.63% | |
43 Neutral | 6.26B | -1.78 | -95.34% | ― | 39.01% | 7.12% | |
41 Neutral | $2.10B | ― | 94.66% | ― | -29.59% | -115.85% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
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Polestar Automotive Holding UK
1.00
-0.52
-34.21%
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XPEV
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21.29
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121.77%
LCID
Lucid Group
20.50
-14.40
-41.26%
RIVN
Rivian Automotive
14.68
2.97
25.36%
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.