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Polestar (PSNY) Reports FY23 Results, Revenues Down 3% Y/Y
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Polestar Automotive Holding UK PLC (PSNY - Free Report) , 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.
Consequently, the company's operating losses increased 13% to $1.46 billion compared with $1.29 billion reported in 2022. Polestar reported a gross loss of $414.7 million, representing a significant shift from a profit of $98.4 million in 2022, with a gross margin of negative 17.4% compared with a positive 4% in 2022. The gross profit margin aligned with earlier guidance and was impacted by non-cash impairment charges of approximately $450 million related to Polestar 2 assets and inventory.
The net loss increased to $1.17 billion in 2023 from $481.5 million reported in the previous year.
The wait for PSNY's postponed earnings announcement was full of challenges, including less investment from its main supporter, Volvo Cars, and lower-than-expected demand for electric vehicles.
Per Ansgar, CFO of Polestar, with the preliminary 2023 results published, the company and its auditors are finalizing the process and expect to file its Annual Report on Form 20-F in the coming weeks. PSNY will release its preliminary unaudited results for the first quarter and global deliveries for the second quarter on Jul 2, 2024, before the market opens.
The company sold 54,626 vehicles last year, rising 6% from the 51,549 units sold in 2022. The company also added 34 locations and 33 service points, bringing the total to 192 and 1,149, respectively. Errors in the previous two annual reports have been corrected, with a net loss impact of less than 5% for each year.
Despite widening losses and lower revenues, Polestar is optimistic that new EVs like the Polestar 3 and 4 will boost sales. The company expects to sell more than 155,000 vehicles next year, indicating a significant increase from the nearly 55,000 vehicles sold in 2023.
The EV maker delivered its first Polestar 3 models to customers in the last week of June. The electric SUV is being delivered across two continents as it enters new markets throughout the year. Initial deliveries were made in Sweden, with the North American Polestar 2 starting deliveries in California, New York and Illinois. Per Thomas Ingenlath, CEO of Polestar, more units will be delivered in Germany and Norway in the coming days, with additional test-drive slots available in showrooms.
PSNY also launched a new and cheaper Long Range Single Motor Polestar 3 model in Europe, starting at $85,500, including the handover fee, with availability in the United States, Australia and other markets later this year. Production of the Polestar 3 will begin in South Carolina this summer to expand the brand in the United States, aiming to overcome the new 100% tariff rate on Chinese EVs with local production.
In June, to gain market share, the company launched the new 2025 Polestar 2, featuring design updates, a revamped pack structure, an increased range and more individual options. Since the initial launch, the company has sold more than 160,000 units in 27 different markets.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.63%. The EPS estimates for 2024 and 2025 have improved 21 cents and 34 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 5 cents in the past 60 days. The EPS estimates for 2025 have moved up 20 cents in the past 30 days.
Image: Bigstock
Polestar (PSNY) Reports FY23 Results, Revenues Down 3% Y/Y
Polestar Automotive Holding UK PLC (PSNY - Free Report) , 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.
Consequently, the company's operating losses increased 13% to $1.46 billion compared with $1.29 billion reported in 2022. Polestar reported a gross loss of $414.7 million, representing a significant shift from a profit of $98.4 million in 2022, with a gross margin of negative 17.4% compared with a positive 4% in 2022. The gross profit margin aligned with earlier guidance and was impacted by non-cash impairment charges of approximately $450 million related to Polestar 2 assets and inventory.
The net loss increased to $1.17 billion in 2023 from $481.5 million reported in the previous year.
The wait for PSNY's postponed earnings announcement was full of challenges, including less investment from its main supporter, Volvo Cars, and lower-than-expected demand for electric vehicles.
Per Ansgar, CFO of Polestar, with the preliminary 2023 results published, the company and its auditors are finalizing the process and expect to file its Annual Report on Form 20-F in the coming weeks. PSNY will release its preliminary unaudited results for the first quarter and global deliveries for the second quarter on Jul 2, 2024, before the market opens.
The company sold 54,626 vehicles last year, rising 6% from the 51,549 units sold in 2022. The company also added 34 locations and 33 service points, bringing the total to 192 and 1,149, respectively. Errors in the previous two annual reports have been corrected, with a net loss impact of less than 5% for each year.
Despite widening losses and lower revenues, Polestar is optimistic that new EVs like the Polestar 3 and 4 will boost sales. The company expects to sell more than 155,000 vehicles next year, indicating a significant increase from the nearly 55,000 vehicles sold in 2023.
The EV maker delivered its first Polestar 3 models to customers in the last week of June. The electric SUV is being delivered across two continents as it enters new markets throughout the year. Initial deliveries were made in Sweden, with the North American Polestar 2 starting deliveries in California, New York and Illinois. Per Thomas Ingenlath, CEO of Polestar, more units will be delivered in Germany and Norway in the coming days, with additional test-drive slots available in showrooms.
PSNY also launched a new and cheaper Long Range Single Motor Polestar 3 model in Europe, starting at $85,500, including the handover fee, with availability in the United States, Australia and other markets later this year. Production of the Polestar 3 will begin in South Carolina this summer to expand the brand in the United States, aiming to overcome the new 100% tariff rate on Chinese EVs with local production.
In June, to gain market share, the company launched the new 2025 Polestar 2, featuring design updates, a revamped pack structure, an increased range and more individual options. Since the initial launch, the company has sold more than 160,000 units in 27 different markets.
Zacks Rank & Key Picks
PSNY currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Blue Bird Corporation (BLBD - Free Report) , Geely Automobile Holdings Limited (GELYY - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.63%. The EPS estimates for 2024 and 2025 have improved 21 cents and 34 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 5 cents in the past 60 days. The EPS estimates for 2025 have moved up 20 cents in the past 30 days.