Polestar Automotive Holding UK (PSNY) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 6.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2,547
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -5.10
• Shares Outstanding: 2,279,875,500
• 10 Day Avg. Volume: 3,067,090
• 30 Day Avg. Volume: 6,492,756
• 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 Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $1.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $13.50 ▲(1488.24% Upside)

Polestar Automotive's overall stock score is primarily impacted by its weak financial performance and challenging valuation metrics. The company's significant financial instability, high leverage, and negative cash flows are major concerns. Technical analysis further supports a bearish outlook with negative momentum indicators. The absence of profitability and dividend yield further weighs down the valuation.

Positive Factors

Strategic Partnerships

Strategic partnerships with established players like Volvo enhance technology sharing and supply chain efficiencies, supporting long-term cost reductions and innovation capabilities.

Growing EV Demand

Increasing global demand for EVs, bolstered by government incentives, provides a supportive market environment for Polestar's growth and revenue potential over the long term.

Revenue Growth

Despite financial challenges, improvements in revenue and free cash flow growth indicate potential for future financial stabilization and market expansion.

Negative Factors

High Leverage

High leverage and negative equity pose significant financial risks, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flows

Persistent negative cash flows reflect ongoing liquidity challenges, which may hinder operational capabilities and strategic investments in the long term.

Profitability Challenges

Consistently negative profit margins indicate operational inefficiencies and high costs, which could impede the company's ability to achieve sustainable profitability.

Polestar Automotive Holding UK Business Overview & Revenue Model

Company Description

Polestar Automotive Holding UK (PSNY) is a high-performance electric vehicle manufacturer that focuses on sustainable mobility solutions. A subsidiary of Volvo Cars and Geely, Polestar operates primarily in the automotive sector, designing and producing electric vehicles that combine luxury, performance, and cutting-edge technology. The company's core products include a range of electric cars, with an emphasis on performance-oriented models and innovative features that appeal to environmentally conscious consumers.

How the Company Makes Money

Polestar 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.85 is below the 20-day moving average (MA) of 16.70, below the 50-day MA of 21.85, and below the 200-day MA of 29.50, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSNY.

Polestar Automotive Holding UK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIVN	58 Neutral	$21.46B	―	-65.28%	―	28.21%	44.43%
LI	55 Neutral	$17.31B	28.47	6.53%	―	-10.00%	-54.75%
XPEV	50 Neutral	$18.66B	―	-9.01%	―	86.57%	51.35%
NIO	45 Neutral	$11.24B	―	-296.45%	―	14.94%	2.53%
LCID	41 Neutral	$4.21B	―	-61.12%	―	45.86%	22.13%
PSNY	40 Underperform	$1.40B	―	―	―	―	―

Polestar Automotive Holding UK Corporate Events

Polestar Reports Strong Revenue Growth Amid Challenges

Polestar Automotive Holding UK Plc, a Swedish electric performance car manufacturer, focuses on innovative design and sustainability in the automotive industry, with a presence in 28 global markets. In its latest earnings report, Polestar announced a 49% increase in revenue for the first nine months of 2025, driven by higher sales volumes and a diverse model lineup, despite facing external profitability challenges. Key financial metrics revealed a revenue of USD 2,171 million, a net loss of USD 1,558 million, and a cash balance of USD 995 million, with significant contributions from carbon credit sales. The company also reported a 36.5% increase in retail sales, highlighting strong performance in Europe and the introduction of higher-priced models. Looking ahead, Polestar remains focused on expanding its market presence and enhancing operational efficiency, while navigating a competitive market environment.

Polestar ADR Earnings Call: Growth Amid Challenges

Polestar’s recent earnings call painted a picture of a company experiencing both significant achievements and notable challenges. While the call highlighted strong revenue and sales volume growth, operational improvements, and a successful expansion in Europe, these positives were tempered by a negative gross margin due to an impairment expense, difficulties in the U.S. market, and the absence of updated financial guidance. This mixed bag of results suggests a balanced outlook for Polestar, with both promising achievements and notable challenges ahead.

Polestar Reports Strong Revenue Growth Amid Challenges

Polestar Automotive Holding UK Plc, a Swedish electric performance car brand, is known for its focus on innovative design and sustainability within the automotive industry. The company has recently reported a significant revenue growth of 56% in the first half of 2025, driven by a 51% increase in retail sales volumes and expansion of its retail network. Despite this growth, the company faced profitability challenges due to external headwinds, resulting in a net loss of USD 1,193 million, primarily attributed to a substantial impairment expense. Polestar’s strategic efforts included raising USD 200 million in new equity and confirming a future production site in Europe for the Polestar 7, planned for launch in 2028. Looking ahead, Polestar remains focused on expanding its market presence and achieving a compound annual retail sales volume growth target of 30-35% from 2025 to 2027.