Polestar(US:PSNY) zacks.comยท2024-05-21 17:16Core Points - Polestar Automotive Holding UK PLC (PSNY) may face delisting from Nasdaq due to repeated failures to submit financial reports on time [1] - The company has 60 days to submit a compliance plan after missing deadlines for its full-year 2023 and first-quarter 2024 financial reports [1][3] - The delay in filing is attributed to the need for corrections related to accounting misstatements from 2021 and 2022 [2] Financial Performance - Polestar's 2021 net loss is expected to be reduced by less than 5%, while the 2022 net loss is anticipated to increase by less than 5% due to restatements [3] - First-quarter sales for 2024 dropped 40% to 7,200 vehicles compared to 12,076 units in the same quarter of the previous year [5] - The company announced a workforce reduction of 450 jobs, representing 15% of its total workforce, to cut costs and move towards break-even [5] Funding and Compliance Efforts - Polestar has received consent from lenders for the late filing under its nearly $1 billion loan facility [4] - The company is committed to regaining compliance and is working to file its annual report and first-quarter results as soon as possible [4] - In February, Polestar secured $950 million in funding from 12 global banks, falling short of the $1.3 billion target needed to achieve break-even by 2025 [6] Market Performance - Since going public on May 21, 2021, Polestar's share price has significantly declined from a peak of $5.46 in November 2021 to 15 cents [5] - The company currently holds a Zacks Rank of 4 (Sell), indicating a negative outlook compared to other players in the auto space [7]