Why Polestar Automotive Stock Crashed 13% on Thursday

Earnings Performance - Polestar reported Q3 revenue of $551 million, missing the analyst forecast of$634 million [2] - The company's net loss was $323 million, translating to a loss of$0.16 per share based on a 2.1 billion-share count [2] - Polestar sold 12,548 cars in Q3, an 8% year-over-year decline, with revenue from sales down 10% [3] - The net loss equates to a loss of $25,740 for every EV sold [3] Business Trends - Q3 marked an improvement in Polestar's business, as the revenue decline moderated to 10% compared to a 21% decline through the first three quarters of the fiscal year [4] Market Challenges - Polestar is facing challenges due to higher discounts in a competitive market and delays in sales ramp-up of new carlines, which are impacting sales and profitability [5] - The company updated its guidance, predicting a mid-teens percentage decline in revenue for 2024 and negative gross profit margins, compared to earlier expectations of flat sales and positive margins [6] Analyst Outlook - Most analysts covering Polestar believe the company will not achieve profitability until 2031, with concerns about its ability to survive until then [6]