Polestar Automotive Holding UK PLC ADR (PSNY)

Polestar Automotive Holding UK PLC ADR (PSNY) stock declined by 9.28% due to mounting concerns among investors. This decline came in the wake of disappointing car delivery figures for the first quarter, with Polestar reporting only 7,200 electric vehicles (EVs) delivered, marking a 40% drop from the previous year's 12,076 EVs.

• Investor Sentiment: Investors are increasingly skeptical about Polestar's ability to meet its ambitious targets. Despite management's optimism and plans to introduce two new electric SUV models (Polestar 3 and 4) alongside the existing Polestar 2, investors remain cautious.
• Management's Outlook: Polestar's management considers 2024 a "transitional year," anticipating sales growth and improved profit margins in the latter half of the fiscal year. They aim to sell between 155,000 and 165,000 EVs by 2025, a substantial increase from current levels. Polestar is not expected to turn profitable before 2030, further dampening investor confidence. The uncertain path to profitability and high valuation are compelling reasons for some investors to consider selling the stock.
• Investor Response: Investors' reaction to Polestar's first-quarter performance indicates skepticism regarding the company's ability to achieve its targets. The stock is viewed as speculative, with concerns about its valuation and financial stability despite recent external funding.

Polestar Automotive Holding UK PLC ADR (PSNY) stock declined by 15.67% due to the recent development of Volvo cutting ties with the struggling electric vehicle manufacturer.

• Volvo's Decision to Cut Ties: Volvo's decision to sever its ties with Polestar, a struggling electric vehicle maker, was met with approval from investors.
• Polestar's Financial Challenges: As a result of losing its main source of funding, Polestar saw its stock fall for the third consecutive day, experiencing a 15% loss. Polestar's shares have faced a significant 72% decline year-over-year.
• Transfer of Ownership to Geely Sweden: Volvo is transferring its 48% stake in Polestar (PSNY) to Geely Sweden, which is a unit of Shanghai Geely Zhaoyuan International Investment and holds a 78.7% stake in Volvo and a 40% stake in Polestar. This move makes Geely the dominant shareholder in Polestar. Geely expressed its commitment to providing operational and financial support to Polestar as an independent exclusive brand in the future.
• Challenges for Polestar: Despite Volvo's positive outlook on Polestar's future growth, the electric vehicle manufacturer has faced financial challenges and has yet to achieve profitability since going public in 2022. Polestar operates with a slim gross margin of 1.1%.
• Financial Struggles and Guidance: Polestar had previously reduced its guidance in November and indicated the need to raise an additional $1.3 billion in cash to reach break-even for 2023. This comes in addition to the $450 million cash infusion from Geely and Volvo. Furthermore, the company lowered its 2025 delivery estimates from an initial projection of 290,000 units to a range of 155,000 to 165,000 units.

Polestar Automotive Holding UK PLC ADR (PSNY) stock dropped by 8.70% due to the company falling short of its 2023 delivery target and investors' concerns about leadership changes and upcoming report. Here are the deatils:

• Weaker Than Expected 2023 Deliveries: Polestar, the Swedish electric vehicle (EV) manufacturer, reported its 2023 deliveries, which came in below expectations. In the fourth quarter, Polestar delivered 12,800 vehicles, bringing the total 2023 deliveries to 54,600 vehicles, representing a 6% year-over-year increase. However, this fell short of the company's previous guidance, which had projected 60,000 deliveries for 2023. The company missed its target by 5,400 vehicles or approximately 9.9%.
• Decline in Fourth-Quarter Deliveries: Notably, fourth-quarter deliveries dropped by 8.4% compared to the third quarter when 13,976 vehicles were delivered.
• Management Changes: Alongside the announcement of the deliveries, Polestar revealed three new management appointments. Winfried Vahland, formerly the CEO and President of Volkswagen China Group, joined as a director. Vahland had also served as Skoda Auto's Executive Board Chairman and a board member of Volvo. Per Ansgar, a veteran from Geely and Volvo, assumed the role of Polestar's transitional CFO while the company searches for a permanent replacement. Ansgar replaced Johan Malmqvist, who had been the CFO since 2021. Kristian Elvefors, with over two decades of experience in the commercial automotive industry, was appointed as Polestar's global head of sales. Elvefors had previously worked as a managing director for Volvo. These management changes became effective as of January 15.
• Upcoming Earnings Report: Polestar confirmed that it will release its fourth-quarter earnings on February 29 before the market opens. Analysts anticipate $817 million in revenue, reflecting a 33.19% sequential increase, along with a GAAP EPS loss of 27 cents. For the full calendar year 2023, analysts project revenue of $2.721 billion, up by 10.52% year-over-year, and a GAAP EPS loss of 38 cents.

Polestar Automotive Holding UK PLC ADR (PSNY) stock dropped by 5.60% due to various factors related to Xiaomi's entry into the EV market, increased competition in the industry, Xiaomi's ambitious plans, integration with its tech ecosystem, and the longer-term implications on existing EV manufacturers. Here are the details:

• Xiaomi's Entry into the EV Market: On December 28, Chinese smartphone giant Xiaomi unveiled its first electric car, the Xiaomi SU7, entering the fiercely competitive EV market. This announcement likely had a significant impact on the stock price, as it signaled increased competition in the industry.
• Growing Competition in the EV Industry: The electric vehicle industry has witnessed a surge in competition in recent years, with established players like Tesla, Li Auto, BYD, and XPeng, as well as traditional automakers like BMW, Volkswagen, and Toyota, entering the market. This heightened competition can lead to market share concerns for existing EV manufacturers.
• Xiaomi's Ambitious Plans: Xiaomi's CEO, Lei Jun, announced ambitious plans for the Xiaomi SU7, claiming that it outperforms competitors like Porsche's Taycan and Tesla's Model S in terms of acceleration and other metrics. Such claims can create uncertainty and affect investor sentiment towards existing EV manufacturers like Polestar.
• Integration with Xiaomi's Ecosystem: Xiaomi aims to integrate its electric car with its smartphones and other internet-connected home appliances, emphasizing a broader smart ecosystem. This strategy could be seen as a potential threat to other EV manufacturers if Xiaomi's ecosystem gains traction.
• Longer-Term Impact on Sales: While Xiaomi's EV sales are scheduled to begin in 2024 after over three years of development, the long-term impact on the EV market and existing manufacturers remains uncertain. Investors may have reacted to the potential disruption Xiaomi could bring to the industry.

Polestar Automotive Holding Stock (PSNY) dropped by 2.41% from $2.90 to $2.83 in the trading on Wednesday October 11, 2023. The reason why PSNY stock down today is due to the announcement of mixed-shelf offering. The company filed a mixed-shelf offering that will raise as much as $1 billion. The proceeds from the offering will be used to fund general corporate purposes, including the development and commercialization of new vehicles, as well as potential acquisitions. Several other EV startups have also raised funds recently, including Rivian, Lucid Motors, and Nikola. These companies are all facing increasing competition from established automakers, who are also investing heavily in electric vehicles.

Polestar Automotive Holding Stock (PSNY) dropped by 8.31% from $3.13 to $2.87 in the trading on Thursday September 07, 2023. The reasons why PSNY stock down today including:

• Stock downgrade: Polestar Automotive shares are plummeting after receiving a key downgrade from Barclays analyst Dan Levy. The analyst downgraded the stock from equal weight to underweight, citing softening consumer demand for electric vehicles (EVs).
• Increased competition: The intensifying competition will put pressure on Polestar's margins, especially in the near term. This, coupled with lower expected margins, raises concerns about the company's ability to meet its production targets. Moreover, Polestar may need to seek additional funding in the future.

Polestar Automotive Holding Stock (PSNY) dropped by 13.1% from $3.83 to $3.33 in the trading on Thursday August 31, 2023. The reason why PSNY stock down today is due to release of its earnings data for the first half of 2022.

• Polestar reported revenues of $685.25 million for the second fiscal quarter which missed the consensus estimate by approximately $71 million, investors are unimpressed by continual EV ramp.
• Polestar's operating loss widened 143% year-over-year to $885.2 million in the second quarter. The company attributed the widening loss to its continued commercial expansion and a one-time share listing cost of $372.3 million.

PSNY recently announced its first-quarter earnings report which showed a net loss of $9 million for the period ended March 31. Polestar had $884.3 million in cash remaining as of March 31, down from $973.9 million as of the end of 2022. The company said that its upcoming Polestar 3 SUV will be delayed until 2024 because of software issues The company also said it will cut about 10% of its workforce to reduce costs. Shares fell sharply following the news.

https://www.cnbc.com/2023/05/11/polestar-psny-q1-2023-earnings-report.html

Polestar Automotive's stock is continuously going down. Although Polestar is a new luxury brand, its stock still going down as the poor company performance. While the market for electric cars is fiercely competitive, there are many complaints about the driving experiment, especially with the Polestar 2. In particular, electrical system and brake-related issues are among the top complaints.