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GOTHENBURG - Swedish electric car maker Polestar (NASDAQ:PSNY) announced it has secured a 12-month term facility of up to USD 450 million, alongside the renewal of its EUR 480 million Green Trade Finance Facility. This financial move comes as part of the company’s efforts to support its working capital requirements and sustain its growth trajectory. Trading at $1.11, the company’s stock has declined nearly 40% over the past year, with InvestingPro analysis showing significant debt obligations totaling over $4 billion.
The newly secured USD 450 million facility in February 2025 follows Polestar’s previous achievement in December 2024, when the company obtained over USD 800 million in 12-month term facilities. The Green Trade Finance Facility, originally established in February 2022 with a consortium of global banks, has been renewed to further bolster the company’s financial stability and support its operational needs. InvestingPro data reveals concerning metrics, including a negative gross profit margin of -22.6% and a current ratio of 0.58, indicating potential liquidity challenges.
Polestar, known for its commitment to design and innovation, operates in 27 markets across North America, Europe, and Asia Pacific. The company’s current lineup includes the Polestar 2, Polestar 3, and Polestar 4 models, with plans to introduce the Polestar 5 four-door GT in 2025. Additionally, the Polestar 6 roadster and the Polestar 7 compact SUV are part of the planned future offerings. With production facilities in North America and Asia, Polestar aims to diversify its manufacturing footprint, including the planned production of the Polestar 7 in Europe.
The company has set ambitious environmental goals, aiming to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040. Polestar’s comprehensive sustainability strategy encompasses climate action, transparency, circularity, and inclusion.
Investors can expect Polestar to publish its global retail sales volumes for the first quarter of 2025 on April 10, 2025. The company also plans to release its fourth-quarter and full-year 2024 results around the same time as its Annual Report on Form 20-F for 2024. For deeper insights into Polestar’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including 11 additional ProTips and detailed financial metrics in our exclusive Pro Research Report, one of 1,400+ available for top US stocks.
This financial update is based on a press release statement from Polestar and provides a factual account of the company’s latest financial arrangements without endorsing any claims.
In other recent news, Polestar Automotive Holding UK Plc reported a decline in its financial performance, with third-quarter 2024 revenue falling 10% year-over-year to USD 551 million, attributed to lower sales volumes and competitive market conditions. The company also revealed a net loss of USD -323 million and an adjusted EBITDA of USD -180 million, although this marked a 28% improvement compared to the same quarter in 2023. Polestar’s updated guidance for the full year 2024 anticipates a mid-teens percentage decline in revenue and a negative gross margin similar to 2023, citing challenges such as fewer sales of new models and market discounting pressures.
Additionally, Polestar’s strategic direction has caught the attention of analysts. Bernstein adjusted its price target for Polestar to $0.40 from $0.33, maintaining a Market Perform rating, following the company’s strategy update that emphasized a shift to premium EV positioning and cash conservation. Meanwhile, BofA Securities began coverage with a Neutral rating, setting a price target at $1.25, noting potential growth in the EV market but also highlighting risks related to Chinese ownership and U.S. trade policies.
In another development, Polestar appointed Jonas Engström as its new Chief Operating Officer to bolster its operations, reflecting its intent to enhance operational capabilities as it expands its product lineup. Engström’s previous roles at Volvo (OTC:VLVLY) Cars and his experience in the automotive industry are expected to support Polestar’s growth and innovation. The company also announced plans for future expansion, including the launch of Polestar Energy and increased revenue from CO2 credit sales.
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