What caused PSNYW's earnings to miss forecasts in Q2 2024?

Polestar's earnings fell short of forecasts in Q2 2024 due to a combination of factors:

1. Slowing Demand and High Competition: Polestar faced a challenging market environment with slowing demand for electric vehicles (EVs), especially in the luxury segment where its models compete. Higher-priced models struggled to generate demand amid uncertain economic conditions and increased competition from other EV makers.
2. Non-Cash Impairment Charges: The company recognized non-cash impairment charges of around USD 450 million related to Polestar 2 assets and inventory impairment. These charges impacted the gross profit margin, making it difficult to meet earnings expectations.
3. Production and Delivery Challenges: Production issues and delays in delivering certain models, such as the Polestar 3, contributed to the decline in earnings. For instance, the company had to delay the launch of the Polestar 3, which started customer deliveries in Q1 2024, but production ramp-up was slower than anticipated.
4. Market Conditions and Tariffs: Polestar, along with other EV makers, faced weak demand and price pressures from competitors, which affected sales and revenue. Additionally, the company had to plan to offset hefty EU and U.S. import tariffs on its Chinese-made electric cars, which added to the financial burden.

In summary, Polestar's Q2 2024 earnings miss was primarily due to slowing demand, high competition, non-cash impairment charges, production and delivery challenges, and market conditions and tariffs.