Polestar Loses Power On Earnings

Electric vehicle (EV) companies remain in focus as earnings season comes to an end. Today, we’re looking at Swedish automaker Polestar, which reported weaker-than-expected results.

An adjusted loss per share of $0.15 was 25% greater than last year, while revenues rose 16.30% YoY to $685.2 million. Its second-quarter deliveries rose 36% YoY to 15,765, bringing its first half of 2023 total to 27,841 vehicles. ⚡

Despite the soft results, executives reiterated their intent to deliver at least 60,000 EVs in 2023 with a positive gross margin. Additionally, its next two models are still on track to go into production as expected.

As for its cash balance, it jumped from 884.3 million at the end of March to $1.06 billion at the end of June. Gross margins were 1.4% for the first half of 2023, down from 4.9% in 2022 when it delivered 51,941 vehicles. 💸

Despite management’s optimism that the company will reach its goals and growing cash balance, investors remain skeptical about its future results. $PSNY shares fell 13% on the day and are nearing their all-time lows set earlier this year. đŸĒĢ

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Snow Rest For The Wicked

Earnings season is a tough time for investors in several retail favorites, including Snowflake and AMC Entertainment. Let’s quickly see how they fared during their most recent quarters. 👇

We’ll start with everyone’s favorite movie theatre chain, AMC Entertainment. The company beat earnings and revenue expectations during the fourth quarter, but the stock is still falling after hours. 

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Dave Rides The Speculation Wave

Neobanks that came public during the pandemic at insane valuations and got crushed over the last few years are roaring back in the current environment. đŸĻ

Dave Inc. is a digital banking service primarily focusing on cash advances, working off tips and subscription fees rather than overdraft fees. That was a solid business in the ZIRP era of cheap money but faced a reckoning in a higher interest rate environment. 💸

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Renewable Stocks Lack A Charge

The current market environment has not been kind to renewable energy stocks like electric vehicle makers or solar manufacturers. And that trend continued today with lackluster earnings results. 👎

Rivian kicked it off by saying that it’s laying off 10% of its workforce due to EV pricing pressures. Although it built and shipped more than double the vehicles it did in 2022, its 2023 losses still totaled more than $5.40 billion. đŸĒĢ

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Speculation Heightens As Jumia Jumps

As we’ve discussed, speculation continues to spread to all corners of the market. Even those areas that have been left for dead for quite some time. Today’s example of this is Jumia Technologies, the “Amazon of Africa” that caught wildfire early in its life before the gravity of reality brought it back down to earth. 🛒

The company reported reducing its losses by over 90% in the fourth quarter as it focused on restoring order and gross merchandise value (GMV) growth. Like other struggling companies, it cut costs significantly and leveraged lower tax provisions to help drive the earnings improvement. 

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