Loading...
•
Sep 30, 2023
Polestar Q3 2023 Earnings Report
Polestar reported its preliminary unaudited financial and operational results for the third quarter ended September 30, 2023.
Key Takeaways
Polestar reported a significant increase in revenue and car deliveries for Q3 2023, with revenue up 41% year-on-year to $613.2 million and deliveries up 51% to 13,976 cars. Despite this growth, gross profit decreased by 11% due to irregular supplier charges and increased inventory impairment. The company also reported an operating loss of $261.2 million.
Total revenue for Q3 2023 increased by 41% year-on-year to $613.2 million.
13,976 cars were delivered in Q3 2023, marking a 51% increase.
Gross profit decreased by 11% to $3.6 million, primarily due to irregular supplier charges and increased inventory impairment.
Operating loss for the quarter was $261.2 million.
Polestar
Polestar
Forward Guidance
Polestar expects to deliver approximately 60,000 vehicles for the full year 2023 and anticipates a gross margin of approximately 2%. The company has a strengthened business plan targeting accelerated margin improvement and cash flow break-even by 2025, supported by additional liquidity from Geely Holding and Volvo Cars.
Positive Outlook
- Targeting accelerated margin improvement and cash flow break-even by 2025.
- Gross margin target of high teens for fiscal year 2025 with 155,000-165,000 cars.
- Richer product mix with four models in production by 2025.
- Reduced cost structure and refocused approach to key markets, including a new joint venture in China.
- Additional liquidity provided by Geely Holding and Volvo Cars, including extended loan maturities and increased loan capacity.
Challenges Ahead
- Requires approximately $1.3 billion in external funding until achieving cash flow break-even.
- Potential for delays in production ramp-up of new vehicle models (Polestar 3 and 4).
- Risks of not meeting market expectations for new models, leading to lower sales volumes and negative third-party reviews.
- Potential for cost overruns due to increases in raw material prices, supplier charges, and inventory impairment.
- Inability to accurately forecast demand could lead to inadequate manufacturing capacity or excess inventory, impacting profitability.