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Polestar Automotive Holding UK (PSNY)
NASDAQ:PSNY
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Polestar Automotive Holding UK
(NASDAQ:PSNY)
Rating:49Neutral
Price Target:
$1.50
▲(15.38% Upside)
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
$2.37B
Dividend YieldN/A
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth-29.59%
EPS Growth-115.85%
CountryUS
Employees2,547
SectorConsumer Cyclical
Sector Strength79
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,060,462,000
10 Day Avg. Volume1,874,767
30 Day Avg. Volume2,614,591
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.40Price Target Upside-69.23% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Polestar Automotive Holding UK Business Overview & Revenue Model
Company DescriptionPolestar Automotive Holding UK (PSNY) is a high-performance electric vehicle manufacturer focused on sustainable automotive solutions. A subsidiary of Volvo Car Group and Geely, Polestar operates within the electric vehicle sector, designing and producing electric cars that combine performance, luxury, and eco-friendliness. Its core products include the Polestar 1, a high-performance hybrid, and the Polestar 2, a fully electric vehicle that emphasizes advanced technology, design, and sustainability.
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:Aug 28, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Polestar demonstrated strong revenue and sales growth in Q1 2025, alongside significant margin improvements and successful product launches. However, challenges remain with high net losses, cash burn issues, and uncertainties due to international tariffs, leading to a pause in financial guidance for 2025.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Polestar reported an 84% increase in revenue for Q1 2025, driven by the sales of Polestar 3 and 4 models.
Strong Retail Sales Performance
Retail sales increased by 76% year-on-year for Q1 2025 compared to the previous year.
Positive Gross Margin Achieved
Polestar achieved a positive gross margin of 7%, marking a significant improvement with a 15% point swing.
Cost Reductions and Operational Efficiencies
Polestar reported significant fixed cost reductions and improvements in net loss and adjusted EBITDA.
Expansion of Dealer Network
Polestar grew its sales points by 33% year-on-year in Q1 2025, excluding China, as part of its commercial transformation strategy.
Product Success and Awards
Polestar 3 achieved a five-star Euro NCAP rating and Polestar 4 won 'Car of the Year' in South Korea, with production set to start in South Korea in the second half of the year.
Negative Updates
Paused Financial Guidance for 2025
Polestar announced that it is pausing its financial guidance for 2025 due to uncertainties surrounding international tariffs and government regulations.
Impact of Tariffs
Polestar faces challenges with tariffs, particularly in the U.S., which could affect pricing and demand.
High Net Loss in 2024
The company reported a higher net loss of $2 billion for the full year 2024, partly due to significant impairments related to tangible and intangible assets.
Cash Burn and Funding Requirements
Polestar's cash burn remains a concern, with ongoing needs for additional capital and equity funding.
Company Guidance
During the Polestar Q1 2025 results conference call, the company reported a 76% year-on-year increase in retail sales and an 84% growth in revenue, driven by sales of Polestar 3 and 4. The gross margin improved by 15 percentage points, reaching a positive 7%, alongside significant fixed cost reductions and improved net loss and adjusted EBITDA. The company plans to expand sales points by 75% by 2026, having already increased them by 33% in Q1. Polestar aims for 30% to 35% annual growth from 2025 to 2027 but has paused its 2025 financial guidance due to geopolitical uncertainties. Cash flow improvements are also a focus, with a closing cash position of $732 million and secured facilities worth over $900 million.Polestar Automotive Holding UK Financial Statement Overview
Summary
Polestar Automotive faces significant financial challenges, including declining revenue, negative profit margins, high financial leverage, and persistent negative cash flow, indicating operational inefficiencies and liquidity concerns.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
Positive
1.30
Price Trends
1.09
Positive
1.07
Positive
1.08
Positive
Market Momentum
0.03
Negative
75.30
Negative
73.90
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 1.3 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.09, and above the 200-day MA of 1.08, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 75.30 is Negative, neither overbought nor oversold. The STOCH value of 73.90 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $23.84B | 23.35 | 11.91% | ― | 10.28% | -29.75% | |
61 Neutral | $17.78B | 13.97 | -5.49% | 3.03% | 1.50% | -15.71% | |
57 Neutral | $13.21B | ― | -240.42% | ― | 23.39% | 3.93% | |
55 Neutral | $23.02B | ― | -13.34% | ― | 66.53% | 48.17% | |
49 Neutral | $2.37B | ― | 94.66% | ― | -29.59% | -115.85% | |
49 Neutral | $16.03B | ― | -54.42% | ― | 2.73% | 45.63% | |
43 Neutral | $6.48B | ― | -54.39% | ― | 39.01% | 7.11% |
* Consumer Cyclical Sector Average
Performance Comparison
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RIVN
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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.