Polestar (PSNY) recorded its first profit since going public in Q3 as the Swedish EV maker builds momentum heading into the end of 2022. Strategic cost-cutting measures and rising demand pushed Polestar into positive earnings territory as the company eyes 50,000 deliveries by year’s end while solidifying its position in the rapidly evolving global auto industry.
The EV maker, backed by established industry vets Volvo and Geely, managed to turn a profit for the first time as a public company. Meanwhile, many electric vehicle brands have watched their losses widen this earnings season.
Rivian (RIVN), for instance, cited higher input costs as the reason for posting an over $1.7 billion net loss in the third quarter.
Meanwhile, Polestar is quickly becoming a contender in the expanding EV market, with a strict focus on design, innovation, and, most importantly, sustainability.
In April, Hertz, the rental car company, expanded its EV fleet, ordering up to 65,000 Polestar electric vehicles, a significant deal considering the automaker only delivered 29,000 total in 2021.
After going public on the Nasdaq exchange under the ticker PSNY in June 2022, Polestar has accelerated its growth strategy with a new platform and funding sources.
The EV maker expanded its diverse premium EV portfolio in October, officially debuting the Polestar 3, its first electric SUV with 300-mile range and a price tag of around $84,000.
Polestar’s CEO, Thomas Ingenlath, stated on the company’s Q3 earnings call, “we are a real [electric] car company, we are in production, we are putting cars on the road today, and we are delivering on our ambitious growth plan,” and it is showing in the company’s results.
Polestar (PSNY) Q3 2022 financial updates and milestones
In October, Polestar reported a total of 30,424 deliveries for the year so far, with around 9,215 being delivered in Q3. Ingenlath noted if it were not for lockdowns in China due to Covid, the company would have easily hit its 50K delivery target.
Meanwhile, Polestar expects the fourth quarter to be its highest production period yet, with over 20,000 anticipated deliveries. The company’s CFO, Johan Mamqvist, says Polestar “will catch up” as it has already produced the vehicles, which are now being delivered to customers.
Since this is Polestar’s first earnings as a public company, the EV maker has chosen to compare results for the first nine months of 2022.
Polestar achieved revenue of $1.48 billion on 30,000 deliveries in the first nine months of 2022. Strong backing ($1.6B) helped the company navigate the changing economic environment – it’s well-funded through 2023.
Perhaps more important, Polestar’s established network from Volvo and Geely means the EV maker can aggressively enter major auto markets (Asia, EU, US) without building or partnering.
The company already has a presence in 27 markets across seven countries. Polestar’s asset-light strategy helped the company shrink its operating loss by 33% while promoting its first quarterly profit as a public company of $299.4 million.
Polestar plans to rapidly expand its EV portfolio with the Polestar 4, a sports SUV, expected in 2023, followed by the Polestar 5 sport GT in 2024 and Polestar 6 roadster in 2026.
PSNY stock is up over 20% today as investors digest the positive news. However, Polestar’s stock is down over 50% since the start of 2022.
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