- 7,200 cars delivered in Q1 2024; cash and cash equivalents of
USD 784 million as of March 31, 2024
- 20,200 cars delivered year to date, with Q2 2024 up 80%
compared to Q1 2024
- New retail model, geographic expansion, growing line-up and
sales organisation changes driving future sales growth
- Announced staff reductions completed, resulting in 15% fewer
positions, in addition to 10% reduction in 2023
Polestar (Nasdaq: PSNY), reports its preliminary unaudited
financial and operational results for the three months ended March
31, 2024 and reports its global deliveries for the second quarter
of 2024.
This press release features multimedia. View
the full release here:
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Polestar delivered approximately 13,000 cars in the second
quarter, a growth of 80% compared to the previous quarter. This
takes global deliveries for the first six months of the year to
20,200 with USA, Sweden, Norway and Germany delivering a strong
momentum.
Thomas Ingenlath, Polestar CEO, said: “We have strong momentum
as we enter the second half of the year. Our two new SUV’s have
received stellar reviews from the global media and first test drive
slots were booked out and additional slots are filling up fast. Our
retail sales model shift is accelerating in Europe and we have
strengthened our sales management team.
"Production of Polestar 3 in South Carolina is on-track to start
at end of the summer and production of Polestar 4 is set to start
in South Korea in the second half of 2025, diversifying our
manufacturing footprint and mitigating impacts of the announced
tariffs.
"We expect strong revenue improvement in the second quarter and
are confident about our business performance in the latter part of
the year. Looking further ahead, our model expansion and increased
market presence – with seven new market launches to come in 2025 –
will be key growth drivers for us.”
Recent developments:
- Polestar’s Board of Directors has appointed Winfried Vahland
Board Chair, succeeding Håkan Samuelsson who intends to retire
after the upcoming AGM.
- Board of Directors is further strengthened with the appointment
of two additional directors (subject to approval at the upcoming
AGM) with Christine Gorjanc and Xiaojie Shen (Laura) bringing
significant automotive, finance and reporting expertise.
- Carla De Geyseleer, Audit Committee Chair, has chosen to focus
on her executive role and will not stand for re-election as
Director. Christine Gorjanc has been proposed as Audit Committee
Chair.
- Polestar is widening its retail footprint with existing and new
partners, as part of a shift to a non-genuine agency sales model
across Europe. Sweden and Norway switched to a non-genuine agency
sales model in June with other key markets set to follow suit in
the second half of the year.
- Strengthened sales management team with strategic appointments
in key markets, driving sales growth with increased market
presence.
- Accelerated geographic expansion plans to enter seven new
markets during 2025, France, Czech Republic, Slovakia, Hungary,
Poland, Thailand and Brazil via local distribution
partnerships.
- Global press drive for Polestar 3 and Polestar 4 has resulted
in stellar reviews across key markets.
- Customer deliveries of Polestar 3 have started and will ramp-up
during the summer.
- Staff reductions announced in January now implemented,
resulting in 15% fewer positions, in addition to 10% reduction in
summer of 2023.
- Reduction in supply chain emissions by integrating renewable
fuels for ocean freight and inbound component supplies.
- Polestar and StoreDot successfully charge Polestar 5 prototype
from 10-80% in 10 minutes.
- Polestar and Plugsurfing have launched Polestar Charge, adding
over 650,000 compatible Polestar car charging points for our
customers.
- Partnership announced with Zaptec, offering customers home
charging solutions as part of their Polestar ownership
experience.
Outlook
Sales momentum seen in the second quarter had a positive impact
on inventory levels and cash flow. Polestar remains confident of an
even stronger uptick in deliveries through the second half of the
year, as sales of the two premium SUVs build.
Though the business has increasing momentum, there are
short-term impacts from the introduction of import duties,
alongside continued pricing pressure in global EV markets,
including China.
In light of these factors and to meet its target of cash-flow
breakeven towards the end of 2025, Polestar is adapting its
business plan, including implementing additional mitigating
actions, and expects to provide updated guidance later in the
year.
Conference call and upcoming events
Polestar management will hold a live audio webcast today 2 July,
2024 at 08:00 US Eastern time (14:00 Central European Summer Time).
The live audio webcast will be available at
https://investors.polestar.com/events/event-details/q124-results-webcast.
Following the completion of the call, a replay will be available
at https://investors.polestar.com/.
Polestar expects to post its preliminary unaudited financial and
operational results for the first six months of the year on
Thursday, 29 August 2024, before market open in New York. A live
audio webcast is scheduled to start at 08:00 US Eastern Time (14:00
Central European Summer Time). From Thursday, 15 August 2024,
verified shareholders will be able to ask questions through the Say
Technologies platform accessible via the Polestar investor
relations website.
Key financial highlights The below table summarises key
preliminary, unaudited financial results for the three months ended
March 31, 2024.
(in millions of U.S. dollars)
(unaudited)
Mar 31,
2024
Mar 31,
2023
Restated
%
Change
Revenue
345.3
543.4
(36
)
Cost of Sales
(376.2
)
(520.2
)
28
Gross Profit/ (loss)
(30.8
)
23.2
n/m
Gross Margin (%)
(8.9
)
4.3
n/m
Selling, General and Administrative
expenses
(212.1
)
(214.2
)
1
Research and Development expenses
(11.8
)
(35.7
)
67
Other operating income, net
23.1
6.9
n/m
Operating loss
(231.7
)
(219.9
)
(5
)
- Revenue decreased by USD 198.1 million or 36% mainly due to
lower global vehicle sales, higher discounts driven by inventory
management actions as well as complexities pertaining to revenue
recognition on sales of cars to China JV.
- Gross result decreased by USD 54 million to a gross loss of USD
30.8 million with lower vehicle sales and higher discounts.
- Selling, general and administrative expenses were slightly
down, with active cost management actions offsetting costs for
promotional activities related to commercial campaigns and events
for Polestar 3 and Polestar 4 global launches.
- Research and development expenses decreased by USD 23.9 million
or 67% to USD 11.8 million mainly due to higher capitalization of
internal development program expenditures for future car models and
Polestar 2 IP amortization now being capitalized in inventory. We
continue to invest in future vehicles and technologies.
- Other operating income increased by USD 16.2 million to USD
23.1 million, primarily due to positive foreign exchange effects on
working capital and sales of services to related parties.
- Operating loss increased by USD 11.8 million or 5%, with lower
revenue only partially offset by active cost management actions and
higher other operating income.
Cash flow highlights The below table summarises cash flow
for the three months ended March 31, 2024.
(in millions of U.S. dollars)
(unaudited)
For the three months
ended March 31,
2024
Beginning cash
768.9
Operating
(229.1)
Investing
(188.0)
Financing
463.5
Foreign exchange effect on cash and cash
equivalents
(31.3)
Ending cash
784.0
- Operating cash outflow of USD 229.1 million, mainly driven by
net loss adjusted for non-cash expenses and trade payables and
partly offset by inventory improvement.
- Investing cash outflow of USD 188.0 million, predominantly
driven by higher property, plant and equipment investments as well
as intellectual property investments for Polestar 3, Polestar 4 and
Polestar 5, as well as USD 24.5 capital injection into China
JV.
- Financing cash inflow of USD 463.5 million, with proceeds from
USD 950 million club loan facility, partially offset by principal
repayments on borrowings and trade financing facilities.
Preliminary key operational highlights The below table
summarises key preliminary operational results as of the three
months ended March 31, 2024.
For the three months
ended March 31,
% Change
2024
2023
Global volumes1
7,221
12,076
(40.2)
- including external vehicles with
repurchase obligations
527
355
48.5
- including internal vehicles
166
298
(44.3)
For the three months
ended March 31,
Change
2024
2023
Markets2
27
27
n/m
Locations3
182
143
+38
Service points4
1,173
1,117
+56
- Represents the sum of total volume of vehicles delivered for
(a) external sales of new vehicles without repurchase obligations,
(b) external sales of vehicles with repurchase obligations, and (c)
internal use vehicles for demonstration and commercial purposes or
to be used by Polestar employees (vehicles are owned by Polestar
and included in inventory). A vehicle is deemed delivered and
included in the volume figure for each category once invoiced and
registered to the external or internal counterparty, irrespective
of revenue recognition. Revenue is recognized in scenarios (a) and
(b) in accordance with IFRS 15, Revenue from Contracts with
Customers, and IFRS 16, Leases, respectively. Revenue is not
recognized in scenario (c).
- Represents the markets in which Polestar operates.
- Represents Polestar Spaces, Polestar Destinations, and Polestar
Test Drive Centres.
- Represents Volvo Cars service centres to provide access to
customer service points worldwide in support of Polestar’s
international expansion.
- Global volumes decreased 4,855 to 7,221 cars, with the decline
in the USA driven by the lower demand and the absence of Hertz
sales. Sales mix improved, with fleet sales declining in favour of
increased Retail sales. There was also an increased impact of used
cars in our mix as they come into inventory in more meaningful
way.
- Polestar now has 182 locations and 1,173 service points across
its markets, up with 38 and 56 respectively when compared to the
three months ended March 31, 2023.
Statement Regarding Preliminary Unaudited Financial and
Operational Results
The unaudited financial and operational information published
herein is preliminary and subject to potential adjustments.
Potential adjustments to operational and consolidated financial
information may be identified from further work performed during
subsequent reviews or audits.
About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car
brand determined to improve society by using design and technology
to accelerate the shift to sustainable mobility. Headquartered in
Gothenburg, Sweden, its cars are available online in 27 markets
globally across North America, Europe and Asia Pacific.
Polestar plans to have a line-up of five performance EVs by
2026. Polestar 2, the electric performance fastback, launched in
2019. Polestar 3, the SUV for the electric age, launched in late
2022. Polestar 4, the SUV coupé transformed, is launching in phases
through 2023 and into 2024. Polestar 5, an electric four-door GT
and Polestar 6, an electric roadster, are coming soon.
The Polestar 0 project supports the company’s ambitious goal of
creating a truly climate-neutral production car by 2030. The
research initiative also aims to create a sense of urgency to act
on the climate crisis, by challenging employees, suppliers and the
wider automotive industry, to drive towards zero.
Forward-Looking Statements
Certain statements in this press release (“Press Release”) may
be considered “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or the future
financial or operating performance of Polestar including the number
of vehicle deliveries, gross margin and funding updates. For
example, projections of revenue, volumes, margins, cash flow
break-even and other financial or operating metrics and statements
regarding expectations of future needs for funding and plans
related thereto are forward-looking statements. In some cases, you
can identify forward-looking statements by terminology such as
“may”, “should”, “expect”, “intend”, “will”, “estimate”,
“anticipate”, “believe”, “predict”, “potential”, “forecast”,
“plan”, “seek”, “future”, “propose” or “continue”, or the negatives
of these terms or variations of them or similar terminology. Such
forward-looking statements are subject to risks, uncertainties, and
other factors which could cause actual results to differ materially
from those expressed or implied by such forward looking
statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by Polestar and its
management, as the case may be, are inherently uncertain. Factors
that may cause actual results to differ materially from current
expectations include, but are not limited to: (1) Polestar’s
ability to maintain agreements or partnerships with its strategic
partners, such as Volvo Cars, Geely or Xingji Meizu Group, and to
develop new agreements or partnerships; (2) Polestar’s ability to
maintain relationships with its existing suppliers, source new
suppliers for its critical components and enter into longer term
supply contracts and complete building out its supply chain, while
effectively managing the risks due to such relationships; (3)
Polestar’s reliance on its partnerships with vehicle charging
networks to provide charging solutions for its vehicles and its
reliance on strategic partners for servicing its vehicles and their
integrated software; (4) Polestar’s reliance on its partners, some
of which may have limited experience with electric vehicles, to
manufacture vehicles at a high volume or develop devices, products,
apps or operating systems for Polestar, and to allocate sufficient
production capacity or resources to Polestar in order for Polestar
to be able to increase its vehicle production capacities and
product offerings; (5) the ability of Polestar to grow and manage
growth profitably including expectations of growth and financial
performance by generating expected revenues at expected selling
prices, maintain relationships with customers and retain its
management and key employees; (6) Polestar’s estimates of expenses,
profitability, gross margin, cash flow, and cash reserves; (7)
increases in costs, disruption of supply or shortage of materials,
in particular for lithium-ion cells or semiconductors; (8) the
possibility that Polestar may be adversely affected by other
economic, business, and/or competitive factors; (9) the effects of
competition and the high barriers to entry in the automotive
industry, and the pace and depth of electric vehicle adoption
generally on Polestar’s future business; (10) changes in regulatory
requirements, governmental incentives, tariffs and fuel and energy
prices; (11) the outcome of any legal proceedings that may be
instituted against Polestar or others, adverse results from
litigation, governmental investigations or audits, or tax-related
proceedings or audits; (12) the ability to meet stock exchange
listing standards; (13) changes in applicable laws or regulations
or governmental incentive programs; (14) Polestar’s ability to
establish its brand and capture additional market share, (15) the
risks associated with negative press or reputational harm,
including from lithium-ion battery cells catching fire or venting
smoke; (16) delays in the design, development, manufacture, launch
and financing of Polestar’s vehicles and other product offerings,
and Polestar’s reliance on a limited number of vehicle models to
generate revenues; (17) Polestar’s ability to continuously and
rapidly innovate, develop and market new products; (18) risks
related to future market adoption of Polestar’s offerings; (19)
risks related to Polestar’s distribution model; (20) inflation,
interest rate changes, the ongoing conflict between Ukraine and
Russia and in Israel and the Gaza Strip as well as the Red Sea,
supply chain disruptions, fuel and energy prices and logistical
constraints on Polestar, Polestar’s projected results of
operations, financial performance or other financial and
operational metrics, or on any of the foregoing risks; (21)
Polestar’s ability to forecast demand for its vehicles; (22)
Polestar’s ability to raise additional funding; (23) Polestar’s
ability to successfully execute cost-cutting activities and
strategic efficiency initiatives; (24) the identification of
additional accounting errors and/or a final assessment of errors
already identified that differs significantly from Polestar’s
preliminary view of such errors; and (25) other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in
Polestar’s Form 20-F, and other documents filed, or to be filed,
with the SEC by Polestar. There may be additional risks that
Polestar presently does not know or that Polestar currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements.
Nothing in this Press Release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. Polestar assumes no
obligation to update these forward-looking statements, even if new
information becomes available in the future, except as may be
required by law.
Appendix A
Polestar Automotive Holding UK PLC Preliminary
Unaudited Condensed Consolidated Statement of Loss (in
thousands of U.S. dollars unless otherwise stated)
For the three months ended
March 31,
2024
20231
Revenue
345,347
543,443
Cost of sales
(376,191)
(520,247)
Gross profit (loss)
(30,844)
23,196
Selling, general, and administrative
expense
(212,101)
(214,196)
Research and development expense
(11,788)
(35,747)
Other operating income, net
23,080
6,879
Operating loss
(231,652)
(219,868)
Finance income
3,286
8,530
Finance expense
(126,654)
(30,200)
Fair value change - Earn-out rights
83,104
206,195
Fair value change - Class C Shares
1,500
7,250
Equity in net loss of affiliated
companies
(575)
0
Loss before income taxes
(270,992)
(28,093)
Income tax expense
(3,310)
(9,601)
Net loss
(274,302)
(37,694)
Polestar Automotive Holding UK PLC Preliminary
Unaudited Condensed Consolidated Statement of Financial
Position (in thousands of U.S. dollars unless otherwise
stated)
March 31,
2024
December 31,
2023
March 31,
2023
Assets
Total non-current assets
1,914,982
1,872,954
1,861,158
Current assets
Cash and cash equivalents1
784,021
768,927
884,271
Other current assets
1,240,317
1,490,226
1,241,238
Total current assets
2,024,338
2,259,153
2,125,509
Total assets
3,939,320
4,132,107
3,986,667
Total equity
(1,542,637)
(1,246,128)
(128,155)
Liabilities
Total non-current liabilities
2,683,253
1,890,387
954,337
Total current liabilities
2,798,704
3,487,848
3,160,486
Total liabilities
5,481,957
5,378,235
4,114,823
Total equity and liabilities
3,939,320
4,132,107
3,986,667
- Excludes restricted cash
Polestar Automotive Holding UK PLC Preliminary
Unaudited Condensed Consolidated Statement of Cash Flows (in
thousands of U.S. dollars unless otherwise stated)
For the three months
ended
March 31,
2024
20231
Cash used for operating
activities
(229,075)
(272,023)
Cash used for investing
activities
(188,042)
(130,668)
Cash provided by financing
activities
463,516
310,869
Effect of foreign exchange rate changes on
cash and cash
(31,304)
2,216
Net increase in cash and cash
equivalents
15,094
(89,606)
Cash and cash equivalents at beginning
of period
768,927
973,877
Cash and cash equivalents at end of
period
784,021
884,271
Appendix B Polestar Automotive Holding UK PLC
Non-GAAP Financial Measures
Polestar uses both generally accepted accounting principles
("GAAP," i.e., IFRS) and non-GAAP (i.e., non-IFRS) financial
measures to evaluate operating performance, for internal
comparisons to historical performance, and for financial
decision-making purposes. Polestar believes non-GAAP financial
measures are helpful to investors as they provide useful
perspective on underlying business trends and assist in period on
period comparisons.
These non-GAAP measures are presented for supplemental
information purposes only and should not be considered a substitute
for financial information presented in accordance with GAAP. The
measures are not presented under a comprehensive set of accounting
rules and, therefore, should only be read in conjunction with
financial information reported under GAAP when understanding
Polestar's operating performance.
The measures may not be the same as similarly titled measures
used by other companies due to possible differences in calculation
methods and items or events being adjusted. A reconciliation
between non-GAAP financial measures and the most comparable GAAP
performance measures is provided below.
Non-GAAP financial measures include adjusted EBITDA, adjusted
net loss, and free cash flow.
Adjusted EBITDA
Adjusted EBITDA is calculated as listing expense, fair value
change of earn-out rights, fair value change of Class C Shares,
interest income, interest expense, income tax expense,
depreciation, and amortization, subtracted from net loss. This
measure is reviewed by management and is relevant measure for
understanding the underlying operating results and trends of the
business prior to the impact of any adjusting items.
Adjusted Net Loss
Adjusted net loss is calculated as net loss, adjusted to exclude
listing expense, fair value change of earn-out rights, and fair
value change of Class C Shares. This measure is reviewed by
management and is a relevant measure for understanding the
underlying performance of Polestar's recurring core business
operations.
Free Cash Flow
Free cash flow is calculated by subtracting cash flows used for
tangible assets and intangible assets from cash used for operating
activities. This measure is reviewed by management and is a
relevant measure for understanding cash sourced from operating
activities that is available to repay debts, fund capital
expenditures, and spend on other strategic initiatives.
Unaudited Reconciliation of GAAP and Non-GAAP Results
Adjusted EBITDA
(in millions of U.S. dollars)
For the three months
ended
March 31,
2024
20231
Net loss
(274,302)
(37,694)
Listing expenses
-
-
Fair value change - Earn-out rights
(83,104)
(206,195)
Fair value change - Class C Shares
(1,500)
(7,250)
Interest income
(3,286)
(8,530)
Interest expenses
77,258
30,200
Income tax expense
3,310
9,601
Depreciation and amortization
24,155
39,674
Adjusted EBITDA (non-GAAP)
(257,469)
(180,194)
Adjusted Net Loss
(in millions of U.S. dollars)
For the three months
ended
March 31,
2024
20231
Net loss
(274,302)
(37,694)
Listing expenses
0
0
Fair value change - Earn-out rights
(83,104)
(206,195)
Fair value change - Class C Shares
(1,500)
(7,250)
Adjusted net loss (non-GAAP)
(358,906)
(251,139)
Free cash flow
(in millions of U.S. dollars)
For the three months
ended
March 31,
2024
20231
Net cash used for operating activities
(229,075)
(272,023)
Investing cash flows used for tangible
assets
(23,344)
(18,005)
Investing cash flows used for intangible
assets
(140,231)
(112,663)
Free cash flow (non-GAAP)
(392,650)
(402,691)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240702579217/en/
Bojana Flint Investor Relations bojana.flint@polestar.com
Tanya Ridd Global Head of Communications & PR
tanya.ridd@polestar.com
Theo Kjellberg Head of Corporate & Financial Communications
theo.kjellberg@polestar.com
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