Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [12][10] - Revenue increased by 56% to $1.4 billion, driven by higher sales volume and a growing share of higher-priced models [15][10] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [16][10] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [17][10] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of retail sales volume [12] - Carbon credit sales amounted to $90 million, contributing positively to profitability [15][16] - The sales mix shifted towards more Polestar 2 cars, impacting the overall gross margin negatively [25][26] Market Data and Key Metrics Changes - Strong performance noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [13][14] - Europe is now the main regional market, with 77% of sales coming from this region [49] Company Strategy and Development Direction - The company is focused on an active selling model, enhancing operational efficiency, and improving cash position [9][10] - Plans to launch Polestar 5, which is expected to shape the brand's identity and compete with legacy performance brands [8][10] - The company aims to manufacture Polestar 7 in Slovakia, marking a significant milestone in European manufacturing [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [12][19] - Despite challenges, the company expects to continue growing year-on-year in line with set growth targets [13][21] - The demand for BEVs is still growing, particularly in Europe, although there are shifts towards lower-priced models [24] Other Important Information - The company raised $200 million in new equity and secured approximately $1 billion in new loan facilities [19][20] - Cash position at the end of June was $719 million, with a focus on improving working capital management [20][39] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, especially in Europe, but there is a trend towards lower-priced models [24] - The margin decline was attributed to a negative sales mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes [31] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [32][34] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and discussed ongoing improvements in working capital management [39][40] Question: U.S. market strategy post-EV tax credit - Management highlighted that the U.S. market represents about 8% of sales and emphasized the need to balance volume and profitability [49][50]

Polestar (PSNY) Q2 2025 Earnings Call September 03, 2025 08:00 AM ET Speaker0Okay, thank you for standing by. Welcome to the Polestar first half 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press *1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *1 1 ...

Polestar (PSNY) Q2 2025 Earnings Call September 03, 2025 08:00 AM ET Speaker0Okay, thank you for standing by. Welcome to the Polestar first half 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press *1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *1 1 ...