Polestar Automotive Holding (NASDAQ:PSNY)
Polestar Automotive Holding (NASDAQ:PSNY), an electric vehicle (EV) manufacturer, went public in late June, although it is unlike other EV start-ups that began trading after combining with a special purpose acquisition company (SPAC). The company had already begun production and had more than 55,000 vehicles on the road worldwide when it made its public debut in late June.
Investors are punishing the stock even though the company’s first-half 2022 earnings report showed significant growth. At 11:20 a.m. ET, the stock price was down 10.1%, near the session low.
What’s the Reason?
Polestar Automotive Holding (NASDAQ:PSNY), owned equally by Volvo and Volvo’s Chinese parent firm Geely, reported sales of 21,185 electric vehicles and revenue of $1.04 billion in the first half of 2022. That was a whopping 99% increase in earnings compared to the year before. The company has stated that it plans to keep increasing production throughout the second half of this year and will hit its goal of delivering 50,000 vehicles by the end of 2022.
Despite this, Polestar Automotive Holding (NASDAQ:PSNY) is still committed to expansion, and its operating losses widened over the year’s first half. However, current stock sellers should keep in mind that the $885 million operating loss announced by the company includes a one-time charge of $372 million associated with the merger and public listing.
Commercial sales growth is still an investment priority for the organization. In October, Polestar will release the Polestar 3, an electric SUV with impressive performance. A roadster concept vehicle, the Polestar 6, has also been unveiled, with all 500 manufacturing spots reportedly already taken.
Polestar Automotive Holding’s (NASDAQ:PSNY) connection to Volvo, its parent firm, is an advantage that should set it apart from other EV start-ups. The start-up will use already established production lines at Volvo factories to reduce the initial investment. The market’s decline today is more likely attributable to the general decline in the technology sector than it is to anything in Polestar’s report. If there is room for a new EV manufacturer in your portfolio, it would be wise for EV investors to keep a watch on this name and investigate it more.
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