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Polestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW)
NASDAQ:PSNYW
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Polestar Automotive Holding UK PLC Sponsored ADR Class C
(NASDAQ:PSNYW)
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Rating:51Neutral
Price Target:
$0.50
▲(72.41% Upside)
Polestar Automotive's overall stock score is primarily impacted by its weak financial performance, which poses significant risks. While the company shows positive momentum and growth potential, financial instability and external challenges weigh heavily on its prospects.
Polestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)7.06M
Price to Earnings (P/E)―
Beta (1Y)-0.14
Revenue Growth-29.59%
EPS GrowthN/A
CountryUS
Employees2,547
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)N/A
Shares Outstanding20,499,966
10 Day Avg. Volume267,698
30 Day Avg. Volume7,058,881
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.67
Price to Sales (P/S)1.09
P/FCF Ratio-1.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.50Price Target Upside72.41% Upside
Rating ConsensusHold
Number of Analyst Covering0
Polestar Automotive Holding UK PLC Sponsored ADR Class C Business Overview & Revenue Model
Company DescriptionPolestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW) is a publicly traded company focused on the design, manufacture, and sale of high-performance electric vehicles (EVs). A subsidiary of Volvo Cars and part of the Geely Group, Polestar operates in the automotive sector with a commitment to sustainability and innovation. The company offers a range of electric vehicles that combine performance and advanced technology, targeting environmentally conscious consumers and the growing demand for electric mobility.
How the Company Makes MoneyPolestar generates revenue primarily through the sale of its electric vehicles, which includes models like the Polestar 2 and Polestar 3. The company employs a direct-to-consumer sales model, enhancing profit margins by bypassing traditional dealership networks. Additionally, Polestar earns revenue from leasing options, subscription services, and ancillary products such as charging solutions and accessories. Strategic partnerships with technology and automotive firms, such as collaborations with Volvo for shared platforms and battery technology, also contribute to its revenue. As the global demand for electric vehicles continues to rise, Polestar's focus on innovation and sustainability positions it to capitalize on the expanding EV market.
Polestar Automotive Holding UK PLC Sponsored ADR Class C Earnings Call Summary
Earnings Call Date:Sep 03, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
While Polestar demonstrated strong revenue and retail sales growth, along with successful market expansions and product achievements, significant challenges such as negative gross margins, U.S. market difficulties, and financial pressures due to tariffs and cash burn rate raise concerns. The company is making strategic adjustments but faces a tough external environment.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volumes and increased sales of higher-priced models such as Polestar 3 and Polestar 4.
Retail Sales Growth
Retail sales volume grew by 51% to over 30,000 cars, surpassing the growth target of 30%-35% for 2025 to 2027.
Market Expansion
Polestar expanded its sales points by 40% to 169, excluding China, and launched in France with all three models available.
Polestar 4 Achievements
Polestar 4 won the Red Dot Best of the Best award and set a Guinness World Record for traveling 935 kilometers on one charge.
Positive Adjusted Gross Margin
Adjusted gross margin improved to a positive 1.4% in the first 6 months from a negative 2.6% a year ago.
Carbon Credit Sales
Carbon credit sales reached $90 million, contributing positively to Polestar's profitability.
Negative Updates
Negative Gross Margin
Gross margin was negative at 49% due to an impairment expense of $739 million for Polestar 3 assets.
Challenges in the U.S. Market
The U.S. market, accounting for 9% of retail sales, faces challenges due to tariffs and policy changes, impacting profitability.
Increased Tariffs and Pricing Pressure
New tariffs and mounting pricing pressure negatively impacted profitability, particularly affecting the Polestar 3.
High Cash Burn Rate
The average cash burn was around $140 million for the first 6 months, with ongoing concerns about debt levels and liquidity.
Company Guidance
In the Polestar First Half 2025 Results Conference Call, the company reported significant growth in key metrics, highlighting a 51% increase in retail sales volume to over 30,000 cars, surpassing their growth target of 30% to 35% for 2025 to 2027. Revenue rose by 56% to $1.4 billion, driven by higher sales volume and a growing share of higher-priced models, Polestar 3 and Polestar 4. The adjusted gross margin improved to a positive 1.4% from a negative 2.6% the previous year, although the gross margin was negatively impacted by a $739 million impairment expense for Polestar 3 assets. The company also achieved $90 million in carbon credit sales, contributing positively to profitability. Despite challenges such as tariffs and pricing pressures, Polestar focused on enhancing operating efficiency, cost discipline, and improving its cash position, with a cash balance of $719 million at the end of June. The company secured $200 million in new equity and approximately $1 billion in loan facilities to fund operations. However, due to ongoing external headwinds, Polestar did not issue any new financial guidance, maintaining their target of 30% to 35% compound annual retail sales volume growth over 2025 to 2027.Polestar Automotive Holding UK PLC Sponsored ADR Class C Financial Statement Overview
Summary
Polestar Automotive is in a precarious financial position with significant losses, negative equity, and cash flow challenges. The company struggles with profitability and financial stability, which are critical for long-term viability.Income Statement
Polestar Automotive is experiencing significant losses with negative gross and net profit margins as well as negative EBIT and EBITDA margins. Revenue growth is absent, indicating challenges in scaling operations effectively. The company is struggling to achieve profitability, which is a critical concern.15
Very Negative
Balance Sheet
The company has a negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, which highlights high leverage and potential solvency issues. The equity ratio is negative, suggesting financial instability and reliance on debt financing.10
Very Negative
Cash Flow
Polestar Automotive shows negative operating and free cash flows, indicating cash burn operations. However, the company maintains some liquidity from financing activities. Cash flow ratios to net income are unfavorable, underscoring cash management challenges.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.07B | 2.03B | 2.38B | 2.46B | 1.34B | 610.25M |
| Gross Profit | -459.79M | -876.17M | -413.08M | 119.44M | 860.00K | 56.52M |
| EBITDA | -1.04B | -1.67B | -826.89M | -213.10M | -716.10M | -226.89M |
| Net Income | -1.42B | -2.05B | -1.19B | -465.79M | -1.01B | -484.86M |
Balance Sheet | ||||||
| Total Assets | 3.83B | 4.05B | 4.12B | 3.94B | 3.31B | 2.55B |
| Cash, Cash Equivalents and Short-Term Investments | 668.91M | 739.24M | 768.93M | 973.88M | 757.93M | 316.42M |
| Total Debt | 3.91B | 5.01B | 3.58B | 1.45B | 825.41M | 436.52M |
| Total Liabilities | 5.65B | 7.38B | 5.38B | 4.08B | 3.19B | 1.97B |
| Stockholders Equity | -1.82B | -3.33B | -1.26B | -133.34M | 122.50M | 580.71M |
Cash Flow | ||||||
| Free Cash Flow | -1.68B | -1.35B | -2.45B | -1.80B | -441.83M | -300.76M |
| Operating Cash Flow | -1.38B | -991.21M | -1.89B | -1.09B | -312.16M | -57.05M |
| Investing Cash Flow | -512.65M | -412.56M | -439.40M | -715.97M | -129.67M | -243.71M |
| Financing Cash Flow | 1.47B | 1.42B | 2.10B | 2.09B | 909.57M | 359.64M |
Polestar Automotive Holding UK PLC Sponsored ADR Class C Technical Analysis
Positive
0.29
Price Trends
0.23
Positive
0.19
Positive
0.19
Positive
Market Momentum
0.02
Positive
51.97
Neutral
14.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNYW, the sentiment is Positive. The current price of 0.29 is below the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.23, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSNYW.
Polestar Automotive Holding UK PLC Sponsored ADR Class C Risk Analysis
Polestar Automotive Holding UK PLC Sponsored ADR Class C disclosed 73 risk factors in its most recent earnings report. Polestar Automotive Holding UK PLC Sponsored ADR Class C reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Polestar Automotive Holding UK PLC Sponsored ADR Class C Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 25.98B | 23.13 | 11.33% | ― | 7.49% | -21.06% | |
55 Neutral | 22.23B | -36.36 | -18.51% | ― | 66.53% | 48.17% | |
52 Neutral | 7.36B | -2.08 | -95.34% | ― | 39.01% | 7.12% | |
51 Neutral | $2.04B | ― | 94.66% | ― | -29.59% | ― | |
51 Neutral | 15.22B | -4.40 | -379.72% | ― | 9.60% | -5.91% | |
49 Neutral | 18.92B | -4.82 | -57.76% | ― | 2.73% | 45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
PSNYW
Polestar Automotive Holding UK PLC Sponsored ADR Class C
0.29
-0.01
-3.33%
NIO
Nio
7.04
0.36
5.39%
LI
Li Auto
24.36
-1.29
-5.03%
XPEV
XPeng, Inc. ADR
22.79
10.61
87.11%
LCID
Lucid Group
23.96
-11.34
-32.12%
RIVN
Rivian Automotive
15.59
4.37
38.95%
Polestar Automotive Holding UK PLC Sponsored ADR Class C Corporate Events
Polestar Reports Increased Revenue but Faces Significant Losses in H1 2025
Sep 3, 2025
Polestar Automotive Holding UK PLC reported its unaudited financial results for the first half of 2025, showing a significant increase in revenue to $1.42 billion, up from $909 million in the same period in 2024. Despite the revenue growth, the company faced a net loss of $1.19 billion, primarily due to high costs of sales and impairment expenses. The gross margin declined sharply to -49.4% from -2.6% the previous year, indicating challenges in cost management and profitability. The results highlight the company’s ongoing struggles with operational efficiency and the need for strategic adjustments to improve financial performance.
Polestar Completes Equity Investment and Registration Agreement with PSD Investment
Jul 23, 2025
On July 23, 2025, Polestar Automotive Holding UK PLC completed the issuance and sale of 190,476,190 Class A American Depositary Shares to PSD Investment Limited, following a Securities Purchase Agreement signed on June 16, 2025. This transaction also included the conversion of 20,000,000 Class B shares into Class A shares to maintain PSD Investment’s voting power below 50%. Additionally, Polestar entered into a registration rights agreement with PSD Investment, requiring the filing of a Registration Statement for the resale of these shares, which could impact the company’s market presence and investor relations.
Polestar Reports 38% Growth in Q2 2025 Sales
Jul 10, 2025
On July 10, 2025, Polestar Automotive Holding UK PLC announced a significant increase in its retail sales volumes for the second quarter of 2025, totaling 18,049 cars, marking a 38% growth compared to Q2 2024. For the first half of 2025, the company reported sales of 30,319 cars, a 51% increase from the previous year. CEO Michael Lohscheller attributed this growth to the company’s successful retail expansion and increasing customer preference for Polestar vehicles, despite challenging market conditions.
Polestar Approves Key Resolutions at 2025 AGM
Jun 30, 2025
On June 30, 2025, Polestar Automotive Holding UK PLC held its annual general meeting of shareholders where all proposals were approved in line with the board’s recommendations. The meeting, which saw over 2.2 billion votes represented, included resolutions such as the re-election of directors and the adoption of new Articles of Association, reflecting strong shareholder support and strategic alignment.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.