Polestar Automotive Holding UK PLC (PSNY) has reported significant losses for the first half of 2024, with a net loss of USD 541.29 million for the period ending June 30, 2024, compared to a net loss of USD 340.83 million in the same period of the previous year1. This indicates a deteriorating financial performance, which is a key concern for investors.
- Sales Decline and Loss Increase:
- PSNY's sales for the half year ended June 30, 2024, were USD 917.99 million, down from USD 1,237.64 million in the corresponding period of the previous year1.
- The net loss of USD 541.29 million represents a substantial increase from the net loss of USD 340.83 million in the prior year1.
- Analyst Expectations and Actual Performance:
- Analysts had expected a first-quarter revenue of $737.57 million for PSNY, based on data from Benzinga Pro. However, the company reported sales of USD 345.35 million for the first quarter ended March 31, 2024, which is a significant shortfall from the estimated figure2.
- The company also missed analysts' revenue estimates in three consecutive quarters, indicating a pattern of underperformance2.
- Cash Flow and Funding:
- Despite the financial losses, Polestar has seen an improvement in cash flow due to a 30% reduction in inventory turnover, which has positively impacted cash flow3.
- The company has secured additional external funding, with up to USD 300 million secured in August 2024, which is intended to support its operations and vehicle development3.
In conclusion, PSNY's 2024 earnings performance has fallen short of analyst expectations, with significant sales declines and increased losses. However, the company has taken steps to improve its cash flow and has secured additional funding to support its operations. Investors will be watching closely for signs of improvement in the company's financial performance in the coming quarters.
4/13/2025 09:30am
