About this content About Jamie Ashcroft Jamie Ashcroft, the News Editor for Proactive UK, has developed an impressive career in financial journalism, focusing on the small-cap sector for over fourteen years. Before joining the Proactive team, he was a stockbroker during the global financial crisis, a role that complemented his educational background - a firstclass degree in Business and Economics and qualifications in software design and development. As one of the early external hires at Proactive in 2009, ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

Core Viewpoint - Polestar Automotive has commenced production of its new electric SUV, the Polestar 3, in the United States, leading to a significant increase in its stock price. Group 1: Production and Market Strategy - Polestar has started manufacturing the Polestar 3, an upscale electric SUV, at a factory in South Carolina owned by Volvo Cars [2] - The Polestar 3 is designed specifically for the U.S. market and aims to mitigate tariff impacts by being produced locally [4] - Previously, all Polestar EVs for the U.S. and European markets were manufactured in China, raising concerns about competitiveness due to tariffs [3] Group 2: Future Plans and Compliance - Polestar plans to begin production of the Polestar 4, a smaller sporty crossover, in South Korea in 2025 to further avoid tariffs [5] - The company has resolved a compliance issue with the Securities and Exchange Commission by filing its Form 20-F annual report [5] - Polestar is set to report its second-quarter results on August 29, before U.S. markets open [5]

Financial Performance - Polestar's total revenue for the year ended December 31, 2023, was $2,378,562, a decrease of 2.7% compared to $2,444,105 in 2022[102]. - The net loss for 2023 was $1,194.8 million, a significant increase of 150% compared to a net loss of $477.5 million in 2022[198]. - Revenue for the year ended December 31, 2023 was $2,378.6 million, a decrease of $65.5 million, or 3% compared to $2,444.1 million in 2022[199]. - The gross loss for 2023 was $413.1 million, compared to a gross profit of $100.8 million in 2022, indicating a decline of 510%[198]. - Selling, general and administrative expenses for the year ended December 31, 2023 were $949.7 million, an increase of $111.3 million, or 13% compared to $838.4 million in 2022, primarily due to higher advertising and personnel costs[204]. - Research and development expenses for 2023 were $158.4 million, a decrease of 9% compared to $174.9 million in 2022[198]. - The company has experienced inflationary pressures, particularly in battery prices due to rising costs of lithium, cobalt, and nickel, impacting the cost of goods sold[178]. - Cash used for operating activities in 2023 was $1,859.8 million, an increase of $770.5 million compared to $1,089.3 million in 2022, primarily due to net loss and negative changes in working capital[221]. - Cash provided by financing activities was $2,093.3 million in 2023, slightly up from $2,082.5 million in 2022, driven by short-term working capital loans and long-term related party loans[224]. Production and Sales - Polestar delivered approximately 54,600 cars in 2023, representing a growth of 6% compared to 2022[106]. - Polestar has sold 160,000 units of Polestar 2 across 27 global markets since production began in 2019[111]. - Polestar 3 and Polestar 4 production commenced in November 2023 and February 2024, respectively, with plans to start Polestar 5 production in 2025[111]. - The volume of external vehicles without repurchase obligations was 49,809, up from 48,575 in 2022, reflecting a growth of 2.5%[183]. - Polestar's global volumes for the year 2023 reached 54,626, an increase of 6% from 51,549 in 2022[183]. Research and Development - Polestar's research and development team consists of over 650 personnel in Europe, focusing on advanced engineering and sustainable technology solutions[103]. - Polestar's research and development strategy focuses on key electric vehicle technologies while leveraging the Geely ecosystem[124]. - Research and development expenses for the year ended December 31, 2023, were $158.4 million, a decrease of $16.5 million, or 9% compared to $174.9 million in 2022, mainly due to reduced amortization costs[205]. Sustainability Initiatives - The company aims to achieve a truly climate-neutral car by the end of 2030 as part of its Polestar 0 project[103]. - Polestar aims to achieve climate neutrality by 2040 and create a climate neutral car by 2030, with seven strategic initiatives launched to drive towards this goal[125]. - Polestar 2 has achieved a total CO2e saving of 12%, or 3 tons, since its initial launch, due to improvements in materials and manufacturing processes[114]. - Polestar 3 has a cradle-to-gate carbon footprint of 24.7 tCO2e, lower than Polestar 2's 26.1 tCO2e at launch[115]. - 81% of Polestar 3's aluminum mass production and battery cell module production utilize 100% renewable electricity, eliminating 8.5 tCO2e per car[116]. - Polestar aims to reduce all greenhouse gas emissions by at least 90% per car by 2040 and neutralize residual emissions through carbon removals[126]. Market Expansion and Strategy - Polestar plans to expand its model lineup to four performance EVs by 2025, including the Polestar 5, which is expected to start production in 2025[101]. - Polestar intends to diversify its manufacturing footprint, with production of Polestar 3 starting in Chengdu, China, and plans for production in South Carolina, USA, in summer 2024[107]. - Polestar operates in 27 markets globally, with plans to expand further in the Asia Pacific region and the Middle East[146]. - The company has secured USD 950 million in external debt funding from 12 international banks, which will support its growth initiatives[107]. Corporate Governance and Management - Håkan Samuelsson has been the Chairman of the Board since June 2022, with significant executive experience in the automotive sector[259]. - Carla De Geyseleer, serving on the Board since June 2022, has extensive experience as a financial executive in publicly listed companies, including her role as CFO of Volvo Cars[260]. - The company is focused on leveraging the significant executive experience of its board members to drive strategic initiatives in the automotive sector[265]. - The board composition reflects a diverse range of expertise across technology, finance, and automotive industries, enhancing the company's strategic direction[262]. Financial Challenges and Liquidity - As of December 31, 2023, Polestar had cash and cash equivalents of $768.9 million, down from $973.9 million in 2022, indicating ongoing liquidity challenges[213]. - The company does not expect to achieve positive cash flow from operations until late 2025, highlighting ongoing financial challenges[213]. - Polestar's management prioritizes managing liquidity and funding needs due to substantial doubt about its ability to continue as a going concern[213]. - Total outstanding liabilities to credit institutions as of December 31, 2023, was $2,023.6 million, with $553 million related to short-term working capital loans secured by Geely[215]. Employee Compensation and Incentives - The total compensation for Polestar's executive officers for the year ended December 31, 2023, was approximately SEK 39,517,836 (or TUSD 3,932) [272]. - For fiscal year 2023, the Polestar Bonus Program had four key performance indicators (KPIs): operational growth (retail deliveries), financial growth (EBIT), customer experience, and quality [273]. - The Board determined that there will be no cash bonus payout for eligible employees for fiscal year 2023, despite achieving some KPIs [273].

Core Viewpoint - The electric vehicle market is increasingly competitive, and Polestar Automotive Holding UK PLC has struggled significantly since going public in 2022, losing most of its value and requiring additional capital to stabilize its operations [1][5]. Financial Performance - Polestar's Q1 revenues were down 36% year over year, significantly below market expectations, partly due to delayed revenue recognition from vehicle sales to a joint venture in China [3]. - The company reported negative gross margins of nearly 9% for Q1, attributed to lower vehicle sales and increased discounting [3]. - Operating losses increased by approximately 5% year over year, totaling around $232 million for Q1, while free cash flow was negative at nearly $393 million [3]. - Despite a new $950 million loan to improve its balance sheet, Polestar ended Q1 with about $784 million in cash and a negative equity balance exceeding $1.54 billion [3][5]. Delivery and Production Challenges - Q2 deliveries totaled 13,000 vehicles, marking a decline of over 17.5% compared to the previous year, despite the introduction of two new models [7]. - The company has revised its delivery guidance for 2025 down to 155,000 units, nearly halving the original forecast, indicating significant challenges ahead [9]. Valuation and Market Position - Polestar's current valuation is approximately 0.18 times its expected 2026 revenues, which is lower than traditional automakers like Ford and General Motors, and significantly less than other EV companies [8]. - The stock has seen a decline of over 23% since the last analysis, despite a recent rally of more than 55% from its lows [10]. Future Outlook and Capital Needs - The company is expected to require an additional $350 million to reach cash flow breakeven by late 2025, with potential dilution of shares anticipated [9]. - Analysts have mixed views on Polestar, with an average price target of $2.73, suggesting potential for significant upside from current levels, although the valuation remains at a historic low [11].

So I think that is very positive from that perspective. And also, as I mentioned, we have basically not utilized our trade financing facility of EUR470 million. So we are basically 90% of that or more than 90% of that one free for time being. So we can use that going forward here. Clearly then with the situation right now where we see movements in tariffs and movements in price position, et cetera. There will be a lot of focus for us to adapt our business plan and our projects going forward, as Thomas said, ...

The shares of Sweden-based EV maker Polestar (NASDAQ:PSNY) stock are retreating about 9% today even though the electric vehicle company reported that its deliveries had surged in the second quarter. The automaker also confirmed that it had reduced its workforce by 15% this year, in-line with its previous commitment. On the negative side for PSNY stock, however, the company's revenue tumbled 36% in Q1 versus the same period a year earlier. Chinese automaker Geely owns about 24% of Polestar stock, while Volvo ...

Polestar Automotive Holding UK PLC (PSNY) , a Sweden-based EV maker, has released its preliminary unaudited financial and operational results for 2023. Revenues decreased 3% to $2.38 billion from $2.45 billion in 2022, mainly due to increased discounts and lesser carbon credit sales. The net loss increased to $1.17 billion in 2023 from $481.5 million reported in the previous year. Per Ansgar, CFO of Polestar, with the preliminary 2023 results published, the company and its auditors are finalizing the proces ...

The company is enhancing its retail presence with both current and new partners by transitioning to a nongenuine agency sales model throughout Europe. Customers can still configure and order their Polestar vehicles online or through the growing network of Polestar Spaces and service locations, simplifying the purchasing and ownership process. Sweden and Norway adopted this sales model earlier this month, with more key markets to follow in the latter half of the year. To support profitable growth in existing ...

Core Viewpoint - The stock price of Polestar Automotive has seen a significant increase due to optimism surrounding its new sales model and expansion plans, despite a year-to-date decline of over 65% in shares as global EV sales growth has slowed [1][3]. Group 1: Company Developments - Polestar shares surged by as much as 30% at the start of the trading week, ultimately closing up by 18.5% [3]. - The company announced a new sales model and executive additions to support its growth strategy [2][8]. - Polestar plans to manufacture its Polestar 3 SUV at a Volvo plant in the United States and is also looking to establish a factory in South Korea [4]. Group 2: Market Expansion - The company aims to enter seven new European markets by next year, including France, which is the second-largest EV market in Europe [5]. - Polestar's strategy includes expanding its retail operations through partnerships to reach more customers and leverage its brand [5][7]. Group 3: Leadership Changes - New executives from Volvo and Chinese EV maker Nio have been appointed to bolster Polestar's expanding commercial operations [8].