In This Article:
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Revenue Growth: 84% increase driven by sales of Polestar 3 and 4 models.
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Retail Sales Volume: 76% increase year-on-year.
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Gross Margin: Improved by 15 percentage points to a positive 7%.
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Net Loss: Decreased by $86 million or 31% to $190 million.
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Adjusted EBITDA: Decreased by $97 million or 46% to $150 million.
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Cash Position: $732 million at the end of Q1 2025.
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Sales Points Growth: Increased by 33% in Q1 compared to the previous year, excluding China.
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Fixed Cost Reductions: Significant reductions contributing to improved financial performance.
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Funding Secured: Up to $450 million in term facilities and EUR480 million in renewed green trade finance facility.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Polestar Automotive Holding UK PLC (NASDAQ:PSNY) reported a 76% increase in retail sales for the first quarter compared to the previous year.
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Revenue grew by 84%, driven by sales of Polestar 3 and 4 models, with a significant margin improvement to a positive gross margin of 7%.
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The company achieved significant fixed cost reductions, leading to improvements in net loss and adjusted EBITDA.
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Polestar is expanding its dealer network, aiming to grow sales points by 75% by 2026, with a 33% increase in the first quarter of 2025 compared to the previous year.
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The updated Model Year 26 Polestar 2 includes new technologies and features, enhancing its appeal and maintaining customer interest.
Negative Points
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Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is facing challenges due to geopolitical uncertainties and potential tariffs, impacting cost structures and pricing strategies.
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The company reported a higher net loss of $2 billion for the full year 2024, despite reductions in selling, general, and administrative expenses.
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There is a need to significantly decrease the unsustainable cash burn rate, which averaged USD 100 million to USD 120 million per month in 2024.
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Polestar has paused its financial guidance for 2025 due to uncertainties surrounding international tariffs and government regulations.
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The transition from a direct distribution model to a dealership model is ongoing and requires more time and resources to fully implement.
Q & A Highlights
Q: Could you talk about the impact of the tariffs that the US is considering and how you're adjusting the impact on demand? A: Michael Lohscheller, CEO: We have about 75% of our business in Europe and 11% in the US. We're well-positioned in the US with localized production in South Carolina, but tariffs impact parts costs. We're monitoring this closely and focusing on cost optimization. The US is a growth market for us, with a 74% increase in retail sales, but we need to manage costs effectively.