Financial Data and Key Metrics - Global vehicle sales in Q2 2024 reached 13,150 cars, up more than 80% compared to Q1 2024 [6] - Revenue increased by nearly 70% to $575 million in Q2 2024, with a gross result of a small negative at $4 million [6] - Operating loss increased by $18 million to $242 million in Q2 2024 [6] - Cash and cash equivalents stood at $669 million at the end of Q2 2024, with $300 million of new external funding secured in mid-August [8] - Operating cash outflow was $166 million since December, with a positive inflow in Q2 2024 [8] Business Line Performance - Polestar 2 volume growth and initial deliveries of Polestar 3 contributed to the improvement in gross results [6] - Polestar 4 deliveries began in Europe, with growing demand for test drives and new capacity being added [10] - Polestar 3 production started in South Carolina, marking the first Polestar model manufactured on two continents [11] Market Performance - Revenue decreased by $118 million or 70% year-over-year in Q2 2024 due to lower global volumes and higher discounts [7] - SG&A expenses decreased by $33 million or 13% year-over-year, driven by cost management actions [7] - Research and development expenses decreased by $36 million or around 75% year-over-year, mainly due to Polestar 2 IP amortization being capitalized in inventory [7] Strategic Direction and Industry Competition - The company is focusing on scaling up Polestar 3 and Polestar 4 deliveries, with a strong emphasis on test drives and regional media activities [10][11] - Polestar is expanding its geographic footprint and optimizing its distribution network, particularly in Europe and the U.S. [12] - The company is working closely with Geely and Volvo to reduce costs and improve efficiency, particularly in the production of Polestar 4 in China and South Korea [33][34] Management Commentary on Operating Environment and Future Outlook - Management expects stronger volumes in the second half of 2024, particularly in the fourth quarter, driven by the ramp-up of Polestar 3 and Polestar 4 deliveries [9][12] - The company aims to achieve double-digit gross margins by the end of 2024, supported by the launch of premium SUVs and cost reduction initiatives [24][31] - Management is focused on improving cash flow and working capital, with significant inventory reductions and efficient use of trade financing facilities [8][16] Other Important Information - The company has addressed its NASDAQ reporting deficiency by filing its audited 2023 results on Form 20-F [5] - Polestar is working to mitigate the impact of potential tariff increases in the U.S. and Europe, particularly through local production and cost optimization [42][44] Q&A Session Summary Question: Sequential improvement in COGS per external unit - The reduction in COGS was driven by lower raw material costs for batteries and cost reduction efforts with Volvo and Geely [15] Question: Disconnect between operating income and free cash flow - The improvement in free cash flow was primarily due to a $300 million reduction in inventory [16] Question: Polestar 3 and Polestar 4 order status - Polestar 4 is not yet launched in the U.S., while Polestar 3 has a large order book in Europe and the U.S., with expectations for more orders as test drives ramp up [17][18] Question: Delivery expectations for the second half of 2024 - Deliveries are expected to grow gradually, with a strong fourth quarter driven by Polestar 3 and Polestar 4 [23] Question: Capital needs and funding - The company has secured $950 million in club loan financing and an additional $300 million in debt financing, with no immediate need for further capital [26][27] Question: Tariff impact and gross margin outlook - The company is mitigating tariff risks through local production in the U.S. and South Korea, with a goal of achieving double-digit gross margins by the end of 2024 [42][46] Question: Working capital sustainability - The company is working to maintain lean working capital levels, particularly through faster sales and delivery processes in Europe and the U.S. [36][38] Question: Share price and brand exposure - Management is focused on improving the share price through increased deliveries, market expansion, and targeted marketing efforts [50][53][54]

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF ...

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].

Polestar (NASDAQ:PSNY), an electric vehicle (EV) company backed by China's Geely (OTCMKTS:GELYY), but based in Sweden, got a non-compliance notice from Nasdaq for failing to maintain a price of $1 per share. EV Winter Polestar plans to build its Polestar 3 in Ridgeville, South Carolina. But the Biden administration's new 25% tariff on Chinese batteries has forced a re-evaluation. PSNY Stock: What Happens Next? Read More:Penny Stocks — How to Profit Without Getting Scammed PSNY stock was at 94 cents per shar ...

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 ...