Beaten Down Electric Car Stock Polestar Misses Mark in Q2 Despite Record Vehicle Deliveries; Eyes 2023 Production Boost

Polestar Automotive Holding UK PLC (NASDAQ:PSNY) reported second-quarter FY23 sales growth of 16% year-on-year, to $685.2 million, missing the consensus of $756.2 million.

Adjusted EPS loss of $(0.16) missed the consensus loss of $(0.12).

The electric car brand delivered 15,765 vehicles during Q2, a growth of 36% Y/Y. 

The gross loss was $(0.8) million versus $60.7 million a year ago. The margin of (0.1)% compared to 10.3% a year ago was due to higher contract manufacturing costs, supplier charges for semiconductors and batteries, and inventory impairment.

The operating loss was $(274.4) million compared to $(627.3) million a year ago due to a listing expense of $372.3 million in Q2 of 2022.

The company held $1.06 billion in cash and equivalents.

Thomas Ingenlath, Polestar CEO, comments: “We achieved record volume growth during the second quarter. Deliveries of our significantly upgraded Polestar 2 are now ramping up.”

“With Polestar 4 expected to start production in November and Polestar 3 in the first quarter of next year, we are entering an exciting phase of higher volumes and value from our expanded model range.”

Outlook: With record global deliveries of 27,841 for the first six months, Polestar still expects to deliver 60,000-70,000 vehicles and a gross margin of 4% in 2023.

PSNY stock has lost 28% YTD.

Price Action: PSNY shares are trading lower by 2.09% at $3.75 in premarket on the last check Thursday.