Polestar (PSNY) stock slides as losses widen, will new EVs boost sales?

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Polestar (PSNY) stock slides as losses widen, will new EVs boost sales?


EV maker Polestar’s (PSNY) stock is down Friday after reporting 2023 results. Can Polestar’s new electric models help turn things around as losses rise? The report comes as the first Polestar 3 buyers received their electric SUVs this week.

Polestar stock drops after 2023 earnings results

After several months of delaying, Polestar released its 2023 financial results Friday, showing falling revenue and widening losses.

Polestar’s revenue slipped 3% from $2.45 billion in 2022 to $2.38 billion last year. The lower top line was mainly due to increased discounts and fewer carbon credit sales.

As a result, the EV maker’s operating losses rose 13% to $1.46 billion, up from $1.29 billion in 2022. Lower revenue and rising sales costs led to higher losses. It also included a one-time share-based listing charge of $372 million and a higher impairment of $450 million after reassessing Polestar 2 inventory.

Polestar sold 54,626 vehicles last year, up 6% from the 51,549 sold in 2022. The EV maker added 34 locations and 33 service points for a total of 192 and 1,149, respectively.

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Polestar stock chart over the past 12 months (Source: TradingView)

Polestar’s stock slid 4% on Friday following the 2023 earnings release. Polestar shares are down 63% in 2024 and over 92% from its all-time high.

Can Polestar turn things around as new EVs roll out?

Despite rising losses and lower revenue, Polestar believes new EVs, like the Polestar 3 and 4, will help boost sales.

Polestar expects to sell over 155,000 vehicles next year, a significant jump from the just under 55K sold in 2023.

Polestar-3-lower-priced
Polestar delivers first Polestar 3 electric SUVs (Source: Polestar)

The news comes after Polestar delivered its first Polestar 3 models to customers this week. Polestar is delivering the electric SUV across two continents as it rolls out to new markets throughout the year.

The first Polestar 3s were delivered in Sweden, while the North American Polestar 2 is handing over the first models in California, New York, and Illinois. On Friday, more models will be delivered to Germany and Norway.

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Polestar 3 Long range Single motor RWD model (Source: Polestar

Polestar also introduced a new lower-priced Long range Single Motor Polestar 3 model this week. The lower-cost model is available in Europe, starting at $85,500 (€79,890), including the handover fee. It will be available to order in the US, Australia, and other markets later this year.

Polestar will begin Polestar 3 production in South Carolina this summer to expand the brand in the US.

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New 2025 Polestar 2 (Source: Polestar)

With the US setting a new 100% tariff rate on Chinese EVs, Polestar looks to overcome it with local production.

As the EV maker looks to gain market share, it also launched the new 2025 Polestar 2 with added Swedish Gold design elements and more range.

Can Polestar’s new EVs help boost sales? Let us know what you think in the comments.

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