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Is Polestar Automotive Stock a Buy?
PolestarPolestar(US:PSNY) The Motley Foolยท2024-09-28 22:18

Core Points - Polestar reported an 82% sequential increase in car deliveries in Q2 2024, but this raises concerns about underlying issues [2][6] Group 1: Compliance and Leadership Changes - Polestar has regained compliance with Nasdaq after filing its Annual Report on Form 20-F for the fiscal year ended December 31, 2023 [3] - The company delayed its 20-F filing due to the need for additional time to evaluate and quantify errors in historical financial statements [4] - Polestar has revamped its leadership team, hiring a new CEO, head of design, head of global communications, and a new CFO amid compliance issues [5] Group 2: Financial Performance - Polestar's revenues decreased by 17% year over year in Q2, attributed to lower global vehicle sales and higher discounts [6] - Gross profit fell from $900,000 to negative $2.4 million, indicating unsustainable production costs [7] - Research and development spending dropped by 76%, raising concerns about the company's commitment to innovation in a competitive market [8] Group 3: Losses and Market Position - Polestar reported a loss of $242.3 million in Q2, which is a 12% improvement compared to the same quarter in 2023 [9] - The company has never had a profitable year, compounded by accounting issues and significant management turnover [10] - Polestar's stock has declined approximately 90% from its peak, reflecting Wall Street's negative sentiment towards the company [11]