Polestar (NASDAQ:PSNY), the electric vehicle manufacturer, announced today that it delivered approximately 7,200 cars in the first quarter of 2024, which includes 1,200 units of the Polestar 4 model in China.
CEO Thomas Ingenlath described this year as a pivotal period for the company, transitioning from offering a single model to increasing deliveries of its luxury SUVs, the Polestar 3 and Polestar 4, in the latter half of the year. The company anticipates these models to drive significant revenue and margin growth, aligning with its 2025 financial targets.
In a strategic financial move, Polestar secured $950 million in new funding from an international banking consortium in February. This capital injection is intended to support the company's next development phase.
Additionally, there have been notable changes in Polestar's ownership structure. Geely Holdings has emerged as a major shareholder with an approximate 24% stake, while Volvo (OTC:VLVLY) Cars maintains a strategic 18% interest. The company also expects to increase its free float to around 18%, welcoming new shareholders.
The company has commenced production of the Polestar 3 in China and plans to expand manufacturing to the United States in the summer of 2024. Furthermore, Polestar 4 production is set to extend to South Korea in the second half of 2025. These developments represent Polestar's efforts to diversify its manufacturing footprint to enhance profitability in key markets, particularly the US.
Polestar is scheduled to release its preliminary unaudited financial and operational results for the first quarter on Thursday, May 23, 2024, before the New York market opens. A live audio webcast will follow at 08:00 US Eastern Time. Starting Thursday, May 9, 2024, verified shareholders will have the opportunity to submit questions via the Say Technologies platform on the Polestar Investor Relations website.
This press release statement is based on information from a recent SEC filing.
InvestingPro Insights
As Polestar (NASDAQ:PSNY) gears up for a transformative year with the expansion of its vehicle lineup and manufacturing capabilities, investors are closely monitoring its financial health and market performance. According to InvestingPro data, Polestar's market capitalization stands at $3.36 billion, reflecting the scale of the company within the electric vehicle sector. Furthermore, the company has experienced a significant return over the last week, with a 9.8% price total return, indicating a recent upswing in investor confidence.
However, not all metrics are as promising. Polestar's P/E ratio is currently negative at -6.18, with an adjusted P/E ratio for the last twelve months as of Q3 2023 at -9.73, which could suggest concerns about the company's profitability. This is echoed by one of the InvestingPro Tips, which highlights that analysts do not anticipate the company will be profitable this year. Additionally, with a gross profit margin of just 2.94% in the same period, Polestar's ability to translate sales into profit is relatively weak, which may be a point of consideration for potential investors.
For those considering an investment in Polestar, accessing the full suite of InvestingPro Tips could provide a more comprehensive understanding of the company's financial nuances. There are 12 additional tips available, which include insights on topics such as cash burn rate, debt servicing capabilities, and stock volatility. To delve deeper into these expert analyses, investors can visit https://www.investing.com/pro/PSNY and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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