Shares of Polestar (NASDAQ:PSNY) closed with more than 1% drop on Tuesday after the electric vehicle (EV) manufacturer reported a larger-than-expected net loss

Polestar Shares Down Following Wider-Than-Expected Q1 Loss

- (Last modified: Jul 3, 2024 2:55 AM)

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Shares of Polestar (NASDAQ:PSNY) closed with more than 1% drop on Tuesday after the electric vehicle (EV) manufacturer reported a larger-than-expected net loss for Q1, despite an uptick in car deliveries in Q2.

The Swedish EV company revealed a net loss of $274.3 million for the quarter, compared to a loss of $37.7 million during the same period the previous year. Sales fell to $345.3 million from $543.4 million.

Polestar indicated that Q2 showed improved momentum, with 13,000 car deliveries, an 80% increase from Q1. The company anticipates this positive trend to continue in the latter half of 2024.

CEO Thomas Ingenlath expressed optimism about the company's performance, expecting strong revenue growth in Q2 and sustained business improvements later in the year.

Looking ahead, Polestar is focusing on model expansion and increasing market presence, with plans to enter seven new markets in 2025, which are expected to be significant growth drivers.

Despite these positive indicators, Polestar acknowledged short-term challenges, including new import duties and pricing pressures in the global EV market, particularly in China. To achieve its cash-flow targets, the company plans to adjust its business strategies, including taking additional mitigating actions.

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