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Polestar Automotive Holding Uk Plc Adr (PSNY)
NASDAQ:PSNY
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Polestar Automotive Holding UK
(NASDAQ:PSNY)
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Rating:45Neutral
Price Target:
$19.00
▼(-3.89% Downside)
The score is held down primarily by weak financial performance (loss-making operations, negative cash flows, and negative equity). Technical indicators are mixed with some short-term strength but broader trend weakness, while valuation provides limited support given a negative P/E and no dividend yield.
Positive Factors
Strategic Partnerships
Strategic partnerships with established companies like Volvo enhance Polestar's technological capabilities and reduce production costs, supporting long-term competitiveness and profitability.
Growing EV Demand
Rising global demand for EVs, supported by government incentives, provides a favorable market environment for Polestar, potentially driving sustained revenue growth.
Product Innovation
Polestar's focus on luxury and performance-oriented EVs with innovative features positions it well in the premium segment, attracting environmentally conscious consumers and supporting brand differentiation.
Negative Factors
Negative Margins
Persistent negative margins highlight operational inefficiencies and high costs, posing a challenge to achieving profitability and financial stability in the long term.
High Financial Risk
Negative equity and high leverage reflect significant financial risk, limiting Polestar's ability to invest in growth and potentially impacting its long-term viability.
Negative Cash Flows
Ongoing negative cash flows indicate challenges in generating sufficient cash from operations, which could constrain Polestar's ability to fund expansion and innovation efforts.
Polestar Automotive Holding UK (PSNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend YieldN/A
Average Volume (3M)311.37K
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,547
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-4.46
Shares Outstanding75,995,850
10 Day Avg. Volume216,763
30 Day Avg. Volume311,369
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)-19.97
Price to Sales (P/S)32.68
P/FCF Ratio-49.31
Enterprise Value/Market Cap35.92
Enterprise Value/Revenue28.54
Enterprise Value/Gross Profit-87.89
Enterprise Value/Ebitda-174.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-15.87
Revenue Forecast (FY)$4.46B
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 through the sale of electric vehicles, which includes various models that cater to different segments of the automotive market. The company also earns money through service agreements, maintenance plans, and software subscriptions that enhance the vehicle's functionality over time. Additionally, Polestar benefits from strategic partnerships, including collaborations with Volvo Cars for shared technology and supply chain efficiencies, which help to reduce production costs and increase profit margins. The growing demand for electric vehicles globally, along with government incentives for EV purchases, further contributes to Polestar's revenue growth.
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 across all verticals. The company is struggling with profitability, high leverage, and negative cash flows. While there are minor improvements in revenue and free cash flow growth, the overall financial health remains weak, with substantial risks due to negative equity and high debt levels.Income Statement
Polestar Automotive's income statement reveals significant challenges. The company has consistently reported negative gross and net profit margins, indicating ongoing losses. Although there is a slight revenue growth in the TTM period, the margins remain deeply negative, reflecting operational inefficiencies and high costs relative to revenue. The EBIT and EBITDA margins are also negative, suggesting difficulties in managing operating expenses.20
Very Negative
Balance Sheet
The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative due to negative equity, highlighting high leverage and financial risk. Return on equity is positive in the TTM period but is misleading due to negative equity. The equity ratio is also negative, underscoring financial instability.15
Very Negative
Cash Flow
Cash flow analysis indicates persistent negative operating and free cash flows, though there is a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is above 1, suggesting that free cash flow exceeds net income, but this is due to both metrics being negative.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.55B | 2.03B | 2.38B | 2.44B | 1.34B | 610.25M |
| Gross Profit | -828.47M | -876.17M | -413.08M | 119.44M | 11.06M | 56.52M |
| EBITDA | -417.20M | -1.67B | -826.89M | -229.51M | -716.10M | -226.89M |
| Net Income | -2.27B | -2.05B | -1.19B | -479.02M | -1.01B | -484.86M |
Balance Sheet | ||||||
| Total Assets | 3.64B | 4.05B | 4.12B | 3.94B | 3.31B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 718.63M | 739.24M | 768.93M | 973.88M | 757.93M | 316.42M |
| Total Debt | 5.65B | 5.01B | 3.58B | 1.44B | 825.41M | 436.52M |
| Total Liabilities | 7.91B | 7.38B | 5.38B | 4.08B | 3.19B | 1.97B |
| Stockholders Equity | -4.27B | -3.33B | -1.26B | -133.34M | 122.50M | 580.71M |
Cash Flow | ||||||
| Free Cash Flow | -1.47B | -1.35B | -2.03B | -1.80B | -441.83M | -300.76M |
| Operating Cash Flow | -1.32B | -991.21M | -1.89B | -1.09B | -312.16M | -57.05M |
| Investing Cash Flow | -379.15M | -412.56M | -417.62M | -715.97M | -129.67M | -243.71M |
| Financing Cash Flow | 1.67B | 1.42B | 2.10B | 2.09B | 909.57M | 359.64M |
Polestar Automotive Holding UK Technical Analysis
Positive
19.77
Price Trends
18.21
Positive
23.74
Negative
27.87
Negative
Market Momentum
1.10
Negative
59.47
Neutral
39.82
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 19.77 is above the 20-day moving average (MA) of 18.11, above the 50-day MA of 18.21, and below the 200-day MA of 27.87, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 39.82 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $16.55B | 27.13 | 6.53% | ― | -10.00% | -54.75% | |
53 Neutral | $21.46B | -5.63 | -65.28% | ― | 28.21% | 44.43% | |
50 Neutral | $20.12B | -49.44 | -9.01% | ― | 86.57% | 51.35% | |
45 Neutral | $2.03B | -0.57 | ― | ― | ― | ― | |
45 Neutral | $10.52B | -3.14 | -296.45% | ― | 14.94% | 2.53% | |
41 Neutral | $3.51B | -1.01 | -61.12% | ― | 45.86% | 22.13% |
* Consumer Cyclical Sector Average
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Polestar Automotive Holding UK
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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.