Polestar aims for 30-35% sales growth and positive EBITDA by 2025

GOTHENBURG, Sweden - Polestar (NASDAQ: NASDAQ:PSNY), the Swedish electric vehicle manufacturer, has outlined an updated strategy aimed at boosting its operational, commercial, and financial performance. According to InvestingPro data, the company currently operates with an EBITDA of -$1.47 billion and faces significant debt obligations of $4.03 billion. The company has set a target for a compound annual retail sales volume growth of 30-35% from 2025 to 2027, with expectations to achieve a positive adjusted EBITDA in 2025.

In the fourth quarter of 2024, Polestar reported a 5.3% increase in retail sales and a 37.2% increase in order intake compared to the same period the previous year. Models Polestar 3 and Polestar 4 accounted for 56% of the order intake in Q4 2024, setting a strong foundation for the company's growth as it enters 2025. However, InvestingPro analysis reveals challenging fundamentals, with a gross profit margin of -22.57% and a current ratio of 0.58, indicating potential liquidity concerns. Subscribers to InvestingPro can access 13 additional key insights about Polestar's financial health.

Polestar CEO Michael Lohscheller stated that the company is accelerating retail expansion and commercial transformation, alongside adjustments to the future model lineup and cost reductions. Lohscheller anticipates 2025 to be the strongest year in Polestar's history.

The company plans to introduce the Polestar 5, a performance 4-seat grand-tourer, in the second half of 2025. This vehicle will be the first to use 800-Volt technology and is based on Polestar's in-house developed bonded-aluminium platform. Additionally, Polestar 7, a premium compact SUV, is slated for production in Europe, contributing to a balanced international manufacturing network.

Polestar's commercial operations are set to expand, with a 75% increase in retail spaces planned until 2026. The company will also commence sales in France in 2025, tapping into one of Europe's largest and fastest-growing EV markets.

The company expects to generate significant revenue from the sale of CO2 credits, with traditional OEMs transitioning to EVs. Polestar has established an EU CO2 pool with four OEMs for 2025. Despite recent stock momentum showing a 54% gain over the past six months, InvestingPro's Fair Value analysis suggests the stock may be overvalued at current levels.

Polestar is launching Polestar Energy in key European markets to make home charging more efficient and cost-effective. This service is expected to reduce home charging costs by up to 30% through the Polestar Energy app.

Customers have access to extensive charging networks, with over 850,000 charging points in Europe and over 17,800 Tesla (NASDAQ:TSLA) Superchargers in North America available to Polestar owners.

The information provided is based on a press release statement from Polestar, detailing its strategic updates and financial outlook.

In other recent news, Polestar, the Swedish electric vehicle manufacturer, disclosed a decrease in Q3 2024 sales and revenue compared to the same period last year. The company sold 12,548 cars, an 8% decline from the previous year, while revenue fell by 10% to $550.7 million. Despite these challenges, Polestar's adjusted EBITDA improved by 28%, primarily due to efforts in reducing selling, administrative, and general expenses.

In light of adverse market conditions, Polestar has revised its full-year 2024 guidance, now expecting a mid-teens percentage decline in revenue. Amid these developments, the company announced a restatement of its 2022 and 2023 financial statements due to balance sheet errors related to unique tooling.

In leadership news, Polestar appointed Michael Lohscheller as President and CEO, Jean-François Mady as CFO, and Jonas Engström as COO. On the operational front, the company started production for the Polestar 3 long-range single motor in the USA and introduced Plug and Charge capability for the same model. These are recent developments that reflect the company's performance and strategic updates as of the end of Q3 2024.

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