Polestar (PSNY) strengthened its financial position in Q4 because the Swedish EV maker enters an exciting yr with two recent electric vehicle launches.
The corporate’s fourth-quarter earnings are a breath of fresh air in comparison with most upcoming EV makers we’ve covered, with narrowing losses and surging revenues.
Polestar Q4 financial results
Polestar released its fourth quarter earnings and full-year 2022 earnings results Thursday, March 2 before market opening, highlighting a solid end to the yr with slimming losses and higher-than-expected sales.
After beating its goal and delivering 51,491 cars last yr, the Swedish EV marker reported revenue of $2.5 billion last yr, up 84% from 2021 and exceeding Wall Street expectations of $2.4 billion.
Perhaps, more importantly, Polestar cut its losses in half last yr (a rarity nowadays) with a net lack of $465 million, in comparison with over $1 billion in 2021.
Polestar says a better gross profit of $118.5 million was resulting from rising Polestar 2 sales and lower fixed manufacturing costs.
In Q4, revenue swelled to $985.2 million on the back of Polestar’s first fully electric automobile. The corporate ended the yr with nearly $1 billion in liquidity because it moves to expand its presence globally.
CEO Thomas Ingenlath expects the momentum to proceed with an “exciting yr” ahead in 2023, as he explained on the corporate’s earnings call.
A giant yr for Polestar
Polestar goals for 80,000 vehicle deliveries in 2023, a rise of around 60% from this past yr.
The corporate launched a serious update to the 2024 Polestar 2 with a brand new high-tech front end, more powerful electric motors and batteries, and extra rear-wheel-drive.
Polestar continues constructing its brand within the US, but as Ingenlath explains on the corporate’s earnings call, although it’s possible you’ll not see as many Polestar vehicles within the US as brands like Rivian or Lucid, the brand is global and could be present in places these EV makers haven’t entered yet.
Polestar has a bonus over other upcoming EV markers like Rivian with the “agility of a startup” and “stability of established players” from parent firms Volvo and Geely.
Slightly than constructing costly recent electric vehicle manufacturing plants like other startups, Polestar can convert existing factories, akin to the one opened by Volvo in Ridgeville, SC, where the Polestar 3 will probably be built.
The Polestar 3, the corporate’s first electric SUV, debuted in October with over 300 miles range. The electrical SUV is anticipated to play a key role in expanding the Polestar brand, with deliveries expected by the tip of the yr.
As well as, Polestar is launching an electrical performance SUV coupe this yr, the Polestar 4, poised to tackle top EVs within the segment just like the Tesla Model Y.
Next yr, Polestar will follow it up with an electrical performance 4-door GT, the Polestar 5.
Polestar stock is up over 20% following its Q4 release after falling over 50% previously 12 months as investors digest the news.