Shares of Swedish electric vehicle maker Polestar Automotive (NASDAQ:PSNY) are trending higher in the pre-market session today after it confirmed the start of production for the Polestar 4 model. Initial deliveries of the model in China are anticipated before the end of this year.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Polestar plans to launch the model in all other markets in early 2024, with deliveries anticipated within the same year. The Polestar 4 is PSNY’s first vehicle to be manufactured at the Hangzhou Bay factory.
Thomas Ingenlath, the CEO of the company, commented on this production milestone, “This car plays a very important role in our growing line-up of exclusive performance EVs. It illustrates the value of our diversified and asset-light approach, making use of our partner and major shareholder’s development and manufacturing expertise.”
Further, the company plans to expand the manufacturing of Polestar 4 in Busan, South Korea. The added capacity will cater to the South Korean and North American markets. Notably, PSNY aims for a lineup of five performance EVs by 2026, with the upcoming Polestar 5 expected to be an electric four-door GT, followed by the Polestar 6, an electric roadster.
Polestar is aiming to reach cash flow break-even in 2025 by prioritizing margins over volume. The company hopes to reach an annual volume of about 155,000 to 165,000 vehicles by 2025. In the meantime, its share price has corrected by nearly 63% in what has been a difficult year for multiple EV names.
Is PSNY a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on Polestar. The average PSNY price target of $5 implies a 130.4% potential upside.
Read full Disclosure
