Polestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW) AI Stock Analysis

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Polestar Automotive Holding UK PLC Sponsored ADR Class C

(NASDAQ:PSNYW)

42Neutral

The overall stock score of 42 reflects significant financial instability and risks, as indicated by negative equity, sustained losses, and cash flow challenges. While there is some technical momentum and promising strategic guidance from the earnings call, these are outweighed by the financial challenges. The lack of valuation metrics adds uncertainty, further affecting the score.

Polestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW) vs. S&P 500 (SPY)

Market Cap

$2.26B

Dividend YieldN/A

Average Volume (3M)70.42K

Price to Earnings (P/E)―

Beta (1Y)0.17

Revenue Growth-29.25%

EPS GrowthN/A

CountryUS

Employees2,515

SectorConsumer Cyclical

Sector Strength59

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)N/A

Shares Outstanding20,499,966

10 Day Avg. Volume48,959

30 Day Avg. Volume70,418

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Polestar Automotive Holding UK PLC Sponsored ADR Class C Business Overview & Revenue Model

Company DescriptionPolestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

How the Company Makes MoneyPolestar Automotive Holding UK PLC generates revenue primarily through the sale of its electric vehicles. The company's primary revenue streams include the direct sale of vehicles to consumers and businesses, as well as leasing and financing options offered to customers. Polestar also benefits from strategic partnerships and collaborations with automotive and technology companies to enhance its product offerings and expand its market reach. Additionally, the company may earn revenue from after-sales services, such as maintenance and repair, as well as from the sale of parts and accessories. Significant factors contributing to its earnings include advancements in electric vehicle technology, growing consumer demand for sustainable transportation, and supportive government policies for clean energy adoption.

Polestar Automotive Holding UK PLC Sponsored ADR Class C Financial Statement Overview

Summary

Polestar Automotive faces significant financial challenges across all key areas. The income statement reveals sustained losses and declining revenues. The balance sheet is weak, with negative equity and high leverage. Cash flow is strained, with negative free cash flow and heavy reliance on financing. These issues collectively indicate financial instability and potential risks.

Income Statement

Negative

Polestar Automotive has experienced significant revenue fluctuations over the years, with revenue declining from 2022 to 2023. The company consistently shows negative net income, resulting in negative net profit margins. Gross profit margins are also negative, indicating costs exceed revenue. EBITDA and EBIT margins are poor, reflecting operational inefficiencies.

Balance Sheet

Very Negative

The balance sheet shows negative stockholders' equity in the last two years, which is concerning. The company has a high debt-to-equity ratio due to negative equity, indicating potential financial instability. Return on equity cannot be calculated due to negative equity. The equity ratio is also negative, underscoring a precarious financial position.

Cash Flow

Negative

Polestar Automotive's cash flow statement highlights negative free cash flow, which has worsened over the past years, reflecting cash burn. Operating cash flow remains negative and shows a declining trend. The company relies heavily on financing activities to support operations.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
2.38B	2.46B	1.34B	610.25M	92.42M
	Gross Profit
-413.08M	119.44M	860.00K	56.52M	52.63M
	EBIT
-1.48B	-913.96M	-945.54M	-442.97M	-191.91M
	EBITDA
-809.90M	-213.10M	-722.71M	-226.89M	-148.32M
	Net Income Common Stockholders
-1.19B	-465.79M	-1.01B	-484.86M	-197.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
768.93M	973.88M	757.93M	316.42M	236.20M
	Total Assets
4.12B	3.94B	3.31B	2.55B	1.55B
	Total Debt
3.58B	1.45B	825.41M	436.52M	546.26M
	Net Debt
2.81B	478.67M	68.73M	120.09M	310.07M
	Total Liabilities
5.38B	4.08B	3.19B	1.97B	957.19M
	Stockholders Equity
-1.26B	-133.34M	122.50M	580.71M	591.16M
Cash Flow		Free Cash Flow
-2.45B	-1.80B	-441.83M	-300.76M	-475.51M
	Operating Cash Flow
-1.86B	-1.09B	-312.16M	-57.05M	-190.06M
	Investing Cash Flow
-439.40M	-715.97M	-129.67M	-243.71M	-285.45M
	Financing Cash Flow
2.09B	2.09B	909.57M	359.64M	475.41M

Polestar Automotive Holding UK PLC Sponsored ADR Class C Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.16

Price Trends

50DMA

0.18

Negative

100DMA

0.19

Negative

200DMA

0.19

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

44.86

Neutral

STOCH

28.72

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNYW, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
LI	76 Outperform	$25.52B	23.86	12.29%	―	15.50%	-32.48%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
XPEV	53 Neutral	$19.06B	―	-17.11%	―	32.32%	49.34%
RIVN	49 Neutral	$15.85B	―	-60.48%	―	12.09%	17.65%
LCID	48 Neutral	$7.71B	―	-54.15%	―	35.71%	8.24%
NIO	47 Neutral	$8.52B	―	-142.49%	―	16.99%	12.99%
PSNYW	42 Neutral	$2.26B	―	94.66%	―	-29.25%	―

* Consumer Cyclical Sector Average

Performance Comparison

PSNYW

Polestar Automotive Holding UK PLC Sponsored ADR Class C

0.16

0.02

14.29%

NIO

Nio

4.03

-1.66

-29.17%

Li Auto

25.04

-4.16

-14.25%

XPEV

XPeng, Inc. ADR

19.76

10.73

118.83%

LCID

Lucid Group

2.53

-0.52

-17.05%

RIVN

Rivian Automotive

13.83

3.50

33.88%

Polestar Automotive Holding UK PLC Sponsored ADR Class C Earnings Call Summary

Earnings Call Date:Feb 27, 2025

(Q3-2024)

% Change Since: -20.00%|

Next Earnings Date:May 08, 2025

Earnings Call Sentiment Neutral

The earnings call highlights Polestar's strategic growth plans, product expansion, and sustainability achievements, which are positive indicators for future performance. However, the company faces significant challenges with cash flow management, competitive pressures, and geopolitical risks that need to be addressed to ensure long-term success.

Q3-2024 Updates

Positive Updates

Strong Projected Growth

Polestar expects a compound annual growth rate between 30% and 35% from 2024 to 2027, indicating strong future growth driven by new product lineups and improved sales performance.

Positive Financial Outlook

Polestar targets a positive adjusted EBITDA in 2025 and aims for a positive free cash flow by 2027, reflecting the company's focus on financial health and sustainability.

Significant Product Expansion

Announcement of new models including Polestar 7, a compact SUV, marking entry into the fast-growing compact SUV segment, and highlighting ongoing product innovation.

Sustainability Achievements

Polestar 4 awarded the most sustainable EV car in the U.K., and significant CO2 reductions achieved with Polestar 2, reinforcing the brand's commitment to sustainability.

Increase in Retail Presence

Expansion of retail locations from 140 to 300, improving customer accessibility and enhancing active selling strategies.

Expanding Revenue Streams

Introduction of Polestar Energy, offering smart charging solutions, potentially becoming a significant revenue pillar.

Negative Updates

Market and Competitive Challenges

Ongoing competitive pricing pressures in the BEV market and slower-than-expected EV market growth present challenges.

Cash Flow and Financing Needs

Current cash burn rate of $100 million to $120 million per month is unsustainable, necessitating further capital raising and cost reductions.

Tariff and Geopolitical Risks

Tariff challenges due to geopolitical tensions require strategic manufacturing adjustments, impacting cost efficiency.

Execution Risks in New Markets

Focus on executing market entry in France carries inherent risks, with broader expansion plans contingent on successful implementation.

Company Guidance

During the Q3 2024 earnings call, Polestar provided comprehensive guidance focusing on various metrics and strategic directions. The company anticipates a compound annual growth rate (CAGR) in volume between 30% and 35% from 2024 to 2027. For 2025, Polestar aims for a positive adjusted EBITDA, followed by a positive free cash flow after investments by 2027. A critical aspect of their strategy involves leveraging CO2 credits, expecting to generate three-digit million amounts in 2025. Additionally, the company plans to expand its retail footprint significantly, aiming to grow from 140 to 300 retail locations, enhancing its active selling model. The Polestar 3 and 4 are expected to contribute significantly to sales, with more than 60% of orders projected to come from these models. The company's platform strategy focuses on harmonizing platforms over time to increase efficiency and reduce costs, with the Polestar 7 being a key future model. Sustainability remains a core commitment, with ongoing efforts to reduce CO2 emissions and utilize recycled materials.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.