Polestar announces global volumes for the fourth quarter, including a strong start to Polestar 4 deliveries
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Insights
The reported global deliveries for Polestar Automotive indicate a moderate year-over-year growth of 6% in car deliveries. While this growth is positive, it is essential to note that the automotive market, especially the electric vehicle (EV) sector, has been experiencing a much higher growth rate on average. This suggests that Polestar's growth is not keeping pace with the broader industry trend, which could be a result of either production constraints or less competitive product offerings.
Furthermore, the expectation of a gross profit margin around break-even points to potential challenges in cost management or pricing strategies. This financial indicator will be crucial for investors as it directly affects the company's profitability and, consequently, its stock valuation. The launch of the Polestar 4 in China and the upcoming introduction of the SUV coupé in Europe and Australia signify strategic market expansions, yet the real impact of these moves will depend on the company's ability to scale production and meet demand without compromising profit margins.
Investors should closely monitor the preliminary unaudited financial and operational results due on 29 February 2024. These results will provide a clearer picture of Polestar's financial health and operational efficiency. The break-even gross profit margin forecast suggests that while the company is managing to cover its costs, there is limited financial cushion for unforeseen expenses or investment in growth initiatives. This could impact the company's ability to invest in research and development or expand into new markets without additional capital.
The engagement with shareholders through the Say Technologies platform indicates a commitment to transparency and shareholder communication, which can positively influence investor sentiment. However, the effectiveness of such engagement will ultimately be measured by the company's responsiveness to shareholder concerns and the subsequent actions taken to address any issues raised.
Polestar's focus on maintaining an exclusive brand position while expanding its product lineup is a delicate balance to strike. The introduction of the Polestar 3, transitioning the company from a single to a triple product offering, is an ambitious move that could significantly impact market share and brand perception. However, the automotive industry is known for high capital expenditure and Polestar's break-even margin projection raises questions about their investment capacity for future product development and market competition.
The strategic timing of new model releases, such as the Polestar 4's launch in China followed by Europe and Australia, indicates a targeted approach to market penetration. Yet, the real test will be in the execution of these plans amidst a challenging market and the reception of new models by consumers. The company's ability to navigate supply chain issues, regulatory environments and consumer preferences will be critical in determining its success in the competitive EV landscape.
(Photo: Business Wire)
Polestar delivered approximately 12,800 cars in the fourth quarter, including 880 Polestar 4 in
Polestar continues to protect its exclusive brand position in what remains a challenging market, resulting in fewer deliveries in the fourth quarter and now expects a gross profit margin for the full year of around break-even.
Thomas Ingenlath, Polestar CEO, comments: “Polestar 4 has been very well received in
Polestar expects to post its preliminary unaudited financial and operational results for the full year 2023 on Thursday, 29 February 2024, before market open in
From Thursday, 15 February 2024, verified shareholders will be able to ask questions through the Say Technologies platform, accessible via the Polestar Investor Relations website.
About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand determined to improve society by using design and technology to accelerate the shift to sustainable mobility. Headquartered in
Polestar plans to have a line-up of five performance EVs by 2026. Polestar 2, the electric performance fastback, launched in 2019. Polestar 3, the SUV for the electric age, launched in late 2022. Polestar 4, the SUV coupé transformed, is launching in phases through 2023 and into 2024. Polestar 5, an electric four-door GT and Polestar 6, an electric roadster, are coming soon.
The Polestar 0 project supports the company’s ambitious goal of creating a truly climate-neutral production car by 2030. The research initiative also aims to create a sense of urgency to act on the climate crisis, by challenging employees, suppliers and the wider automotive industry, to drive towards zero.
Forward-Looking Statements
Certain statements in this press release (“Press Release”) may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Polestar including the number of vehicle deliveries and gross margin. For example, projections of revenue, volumes, margins, cash flow break-even and other financial or operating metrics and statements regarding expectations of future needs for funding and plans related thereto are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Polestar and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) Polestar’s ability to maintain agreements or partnerships with its strategic partners, such as Volvo Cars, Geely or Xingji Meizu Group, and to develop new agreements or partnerships; (2) Polestar’s ability to maintain relationships with its existing suppliers, source new suppliers for its critical components and enter into longer term supply contracts and complete building out its supply chain, while effectively managing the risks due to such relationships; (3) Polestar’s reliance on its partnerships with vehicle charging networks to provide charging solutions for its vehicles and its reliance on strategic partners for servicing its vehicles and their integrated software; (4) Polestar’s reliance on its partners, some of which may have limited experience with electric vehicles, to manufacture vehicles at a high volume or develop devices, products, apps or operating systems for Polestar, and to allocate sufficient production capacity or resources to Polestar in order for Polestar to be able to increase its vehicle production capacities and product offerings; (5) the ability of Polestar to grow and manage growth profitably including expectations of growth and financial performance by generating expected revenues at expected selling prices, maintain relationships with customers and retain its management and key employees; (6) Polestar’s estimates of expenses, profitability, gross margin, cash flow, and cash reserves; (7) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; (8) the possibility that Polestar may be adversely affected by other economic, business, and/or competitive factors; (9) the effects of competition and the high barriers to entry in the automotive industry, and the pace and depth of electric vehicle adoption generally on Polestar’s future business; (10) changes in regulatory requirements, governmental incentives and fuel and energy prices; (11) the outcome of any legal proceedings that may be instituted against Polestar or others, adverse results from litigation, governmental investigations or audits, or tax-related proceedings or audits; (12) the ability to meet stock exchange listing standards; (13) changes in applicable laws or regulations or governmental incentive programs; (14) Polestar’s ability to establish its brand and capture additional market share, (15) the risks associated with negative press or reputational harm, including from lithium-ion battery cells catching fire or venting smoke; (65) delays in the design, development, manufacture, launch and financing of Polestar’s vehicles and other product offerings, and Polestar’s reliance on a limited number of vehicle models to generate revenues; (16) Polestar’s ability to continuously and rapidly innovate, develop and market new products; (17) risks related to future market adoption of Polestar’s offerings; (18) risks related to Polestar’s distribution model; (19) the impact of the global COVID-19 pandemic, inflation, interest rate changes, the ongoing conflict between
Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Polestar assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111757710/en/
Bojana Flint
Head of Investor Relations
bojana.flint@polestar.com
Theo Kjellberg
Head of Corporate PR
theo.kjellberg@polestar.com
Tanya Ridd
Global Head of Communications & PR
tanya.ridd@polestar.com
Source: Polestar Automotive Holding UK PLC
FAQ
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