I wrote this article myself, and it expresses my own opinions. InsideEVs calls it a "devastating efficiency difference." Polestar 2 Dual Motor Vs. Tesla Model 3. If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. An analyst looking at profit margin might look for a higher profit . I have no business relationship with any company whose stock is mentioned in this article. Precious Metals. Despite having recently secured $1.6 billion from a "financing and liquidity support package from major shareholders" - including an "18-month term loan facility with Volvo Cars" sized at $800 million, and a "commitment from PSD Investmentto provide direct and indirect financing and liquidity support" sized at another $800 million - Polestar only has "sufficient funds through 2023". Unaudited Reconciliation of GAAP and Non-GAAP Results, Investing cash flows used for tangible assets, Investing cash flows used for intangible assets, Polestar releases fourth quarter and full year 2022 financial results, Stay up to date on the latest investor news, https://edge.media-server.com/mmc/p/gp4rk9mk, 51,491 cars delivered in 2022, compared to 28,677 in 2021, an increase of 80%, Selling, general and administrative expenses increased, Research and development expenses decreased. Polestar seems to have anticipated that question because the company just revealed a three-year plan that involves new power, bespoke product architecture, and greater differentiation from Volvo. Buzz for North America, sales start 2024, Subscribe to Electrek on YouTube for exclusive videos. The Polestar 3's competitive range capability of 372 miles on a single charge, complemented by advanced autonomous driving and connectivity technologies powered by industry-leading hardware and software from Luminar (LAZR) and Nvidia (NVDA) also makes it an attractive option as EV adoption gains momentum - new EV registrations have continued to expand in strong double-digits, despite a broad-based slowdown in new auto sales this year. In other words, the profit margin on the Polestar is way less than it is for the Model 3. After going public on the Nasdaq exchange under the ticker PSNY in June 2022, Polestar has accelerated its growth strategy with a new platform and funding sources. Polestar Automotive Holding UK Gross Margin 2021-2022 | PSNY. Polestar Shares Rise in Electric-Vehicle Makers Market Debut. Yet, Polestar has also taken the liberty to quietly slash its earlier guidance for full year 2023 deliveries of 124,000 vehicles per the March 2022 Investor Presentation to now just 80,000 vehicles - an approximate 35% downward adjustment that would represent y/y delivery growth of 55%. Polestar's full year 2023 delivery guidance is currently set at 80,000 vehicles, which would represent y/y volume growth of more than 55%. In the 4Q22 call, CFO Johan Malmqvist explained that although the 2023 gross margin should end up being close to what we saw in 2022, it should be worse in the first part of the year and better in the last part of the year: I can provide a little bit more color on the gross margins for this year. Deliveries are another key consideration for forward-looking investors; Polestar delivered 51,491 vehicles in 2022 and they have guided to 80,000 for 2023. Polestar makes most of their vehicles in China but they sell them all over the world! Provide your personal information and sign up. Likely to remain a Polestar exclusive is a new motor, codenamed P10. Strong backing ($1.6B) helped the company navigate the changing economic environment its well-funded through 2023. Both agreements discuss Geely Automotive with respect to R&D help. 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. The companys CFO, Johan Mamqvist, says Polestar will catch up as it has already produced the vehicles, which are now being delivered to customers. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. This measure is reviewed by management and is relevant measure for understanding the underlying operating results and trends of the business prior to the impact of any adjusting items. But one of the segment's newest entrants Swedish. Deposit funds into your account by linking your banking information or transfer funds from another trading account. Although the automaker wouldnt commit to timing for the arrival of the new battery, Polestars bespoke space frame platform and P10 motor are expected to show up on a forthcoming fastback sedan inspired by the Precept concept. Profit Margin measures overall efficiency of Polestar Automotive and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. This lightweight architecture will also be capable of Level III driver assistance, allowing for unsupervised highway driving in certain conditions the company credits its partnership with Luminar and its long-range lidar technology in that respect. Although still impressive, the figure actually represents a 35% discount from management's initial delivery projections of 124,000 vehicles for full year 2023. Buy the stock. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) Polestars ability to maintain agreements or partnerships with its strategic partners, Volvo Cars and Geely, and to develop new agreements or partnerships; (2) Polestars ability to maintain relationships with its existing suppliers, and source new suppliers for its critical components, and to complete building out its supply chain, while effectively managing the risks due to such relationships; (3) Polestars 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) Polestars reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to Polestar by its partners in order for Polestar to be able to increase its vehicle production capacities; (5) competition, the ability of Polestar to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (6) Polestars estimates of expenses and profitability; (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 Polestars 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; (12) the ability to meet stock exchange listing standards; (13) risks associated with changes in applicable laws or regulations and with Polestars international operations; (14) Polestars ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from lithium-ion battery cells catching fire or venting smoke; (15) delays in the design, manufacture, launch and financing of Polestars vehicles and Polestars reliance on a limited number of vehicle models to generate revenues; (16) Polestars ability to continuously and rapidly innovate, develop and market new products; (17) risks related to future market adoption of Polestars offerings; (18) risks related to Polestars distribution model; (19) the impact of the global COVID-19 pandemic, inflation, interest rate changes, the ongoing conflict between Ukraine and Russia, supply chain disruptions and logistical constraints on Polestar, Polestars projected results of operations, financial performance or other financial and operational metrics, or on any of the foregoing risks; and (20) other risks and uncertainties set forth in the sections entitled Risk Factors and Cautionary Note Regarding Forward-Looking Statements in Polestars Form 20-F, and other documents filed, or to be filed, with the SEC by Polestar. The company had earlier announced price increases to two of its three Polestar 2 variants by at least $4,330 over coming months across China to compensate for the sharp increases in upstream raw materials. Discover the professional benefits of the Polestar 2. Represents total volumes of new vehicles delivered, including external sales with recognition of revenue at time of delivery, external sales with repurchase commitments and internal sales of vehicles transferred for demonstration and commercial purposes as well as vehicles transferred to Polestar employees at time of registration. As we have recently shared in a coverage on rival EV upstart Lucid, we believe delivery ramp-up will be as important as production ramp-up within the foreseeable future as competition gains momentum in the nascent industry. The companys recent remarks suggest similar concerns recently raised by industry peers Tesla (TSLA) and GM (GM), which have both alluded to logistics constraints and an elevation in related costs during the third quarter as downside risks to consider on near-term delivery volumes. Current and historical net profit margin for Polestar Automotive Holding UK (PSNY) from 2021 to 2023. I hope to see you there! Production vehicle design and features subject to change. Following the completion of the call, a replay will be available shortly at https://investors.polestar.com/. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. However, the support that Polestar benefits from parents Volvo and Geely (OTCPK:GELYF / OTCPK:GELYY) from both an operational (e.g. While Polestar looks set to deliver on its full year unit sales target, it will likely come at a high cost. Profit margin tells investors how well the Polestar Automotive Holding executes on its overall . This is further corroborated by Polestars recent disclosure that the majority of Polestar 2 cars set for delivery in Q4 are ready and making their way to [its] customers. (in millions of U.S. dollars) (unaudited), Selling, general and administrative expenses. GOTHENBURG, SWEDEN 2 March 2023. Although costs are expected to remain elevated beyond initial expectations in the near-term at Polestar, its upcoming debut of the Polestar 3 SUV alongside an increasing mix of vehicles sold under its new pricing model introduced in recent months are expected to cushion some of the anticipated pressure on its profit margins. Polestar Automotive Holding UK net profit margin for the three months ending March 31, 2023 was . Please disable your ad-blocker and refresh. Polestar believes non-GAAP financial measures are helpful to investors as they provide useful perspective on underlying business trends and assist in period on period comparisons. Think of it as the money that ends up in your pocket. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. The EV manufacturer doesnt mince words Porsche is in Polestars sights as it seeks to enhance its high-performance reputation. Thank you for reading my analysis. This measure is reviewed by management and is a relevant measure for understanding cash sourced from operating activities that is available to repay debts, fund capital expenditures, and spend on other strategic initiatives. We had also previously baked in nominal deliveries on the Polestar 4 in our forecast to be consistent with management's initial guidance for sales of 6,000 units to take place by the end of 2023. Polestar has added eight new markets since the start of 2022: Polestar has 158 retail locations and 1,116 service points across its markets, up 55 and 305 respectively, since the end of 2021. The live webcast will be available at https://edge.media-server.com/mmc/p/gp4rk9mk. The following analysis will discuss both near-term catalysts and risks to watch for and their related implications on the Polestar stock's near-term performance. Open an account. As nice as the Polestar 1 grand touring coupe and Polestar 2 five-door crossover are, they dont exactly tango with racing cars in terms of driving excitement. Search for the stock name - PSNY. The EV maker, backed by established industry vets Volvo and Geely, managed to turn a profit for the first time as a public company. The2022 20-F shows Li Shufu owning the equivalent of 1,866,576,927 Class A ADSs which is about 88.5% of shares outstanding: Li Shufu controls PSD Investment Limited and directly or indirectly owns approximately 91.9% of equity interests in Geely, which owns approximately 82.0% of equity interests in Volvo Cars and approximately 86.0% of GLy Capital Management Partners (Cayman) Limited. Prices; Guidance on revenue, volumes, gross margin and other financial or operating metrics, such as the ones included in the 2023 outlook described in this press release, are forward-looking statements.