EV Maker Polestar's Stock Slides On Lower Revenue Outlook, CEO's Remarks: Retail Brushes It Off
Reuters reported that CEO Michael Lohscheller, who took over in October, noted that it would take longer for the company to achieve profitability.
FollowPolestar Automotive Holding's stock dropped over 12% on Thursday after the Swedish electric vehicle maker posted disappointing fiscal third-quarter (Q3) results and cut its full-year revenue guidance.
The company reported Q3 revenue of $550.7 million, down from $608.6 million a year earlier. Net loss widened to $323 million from $175.4 million a year earlier.
Polestar attributed the weaker-than-expected performance to "continued adverse market conditions," which led to a downward revision of its 2024 revenue outlook.
The company now expects a mid-teens percentage decline in revenue for the year and a negative gross margin similar to 2023.
Polestar said its fourth-quarter (Q4) product mix was impacted by weaker-than-expected sales of Polestar 3 and Polestar 4 models.
Reuters reported that CEO Michael Lohscheller, who took over in October, noted that it would take longer for the company to achieve profitability, citing fewer car sales than projected.
As part of a business review, Polestar now expects to generate positive free cash flow after investments in 2027, a delay from the previous 2025 estimate.
However, Polestar said there had been a "solid order intake" for new models in late Q4, which it views as an encouraging sign for 2025.
The company, backed by Chinese conglomerate Geely, is working to secure an additional $400 million loan facility, which it expects to receive later this month.
About 25% of the proceeds will be used to repay existing loans, while the rest will support working capital needs.
PSNY sentiment and message volume Jan 16 as of 11 am ET | source: Stocktwits
Despite the stock slide, retail sentiment on Stocktwits remained 'extremely bullish' amid a jump in message volume.
Some pointed to the $500 million cash balance at the end of Q3 and the recent sales data, while others said that the loan and strong order intake signal a positive future.
Growth in retail sales has fueled more optimism: the company sold 12,256 cars in Q4, a 5.3% increase from a year earlier, while total orders for 2024 increased by 37.2%.
Polestar's U.S.-listed stock has lost more than 37% of its value over the past year, but its retail fanbase appears to hold steady. Message volume on Stocktwits rose by more than 100% over the past 12 months, and new followers grew by around 7%.
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