PSNY - Polestar: Dangerous Setup (Rating Downgrade)
2024-06-18 04:51:47 ET
Summary
- Polestar is facing waning electric vehicle demand, which led to a 40% decline in deliveries in Q1'24.
- The company has delayed its financial reports for FY 2023 and Q1’24. Polestar now projects to report those results at the end of June.
- I expect Polestar to issue a weak FY 2024 delivery target and walk back its FY 2025 delivery guidance due to slowing demand for EVs.
- Polestar's valuation has been significantly impacted by slowing demand for high-priced electric vehicles and the company's reporting troubles.
- I believe a delisting at this point is the most likely outcome for Polestar.
Polestar ( PSNY ) is suffering from waning electric vehicle demand that has also crushed other electric vehicle companies including Fisker, which is said to be fighting off bankruptcy, and Lucid Group ( LCID ). The Swedish electric-vehicle company still has not reported its FY 2023 and Q1’24 financial results and given that the firm’s Q1’24 deliveries plunged, I don’t believe that Polestar is investable anymore at this time. As a result, I am changing my rating on the EV company to sell and believe that the most likely outcome here is a potential delisting from the stock exchange!...
Polestar: Dangerous Setup (Rating Downgrade)