PSNY - Polestar: Uphill Battle Continues

2024-04-15 15:04:58 ET

Summary

• Polestar shares have lost over 90% of their value since completing a SPAC merger in 2022.
• The company's delivery guidance has been repeatedly cut, and its Q1 2024 delivery number was down 40% compared to the previous year.
• Polestar is facing a funding gap and likely needs to raise more capital through equity, which could significantly dilute existing investors.

The last couple of years have not been kind to investors in electric vehicle companies. Regardless of their business size, many stocks in this space have done poorly, as these companies have lost tons of money and burned through mountains of cash. Polestar Automotive Holding UK PLC ( PSNY ) has been a great example, losing more than 90% of its value since it went public via a SPAC in 2022. Unfortunately for shareholders, even with the price near its recent all-time low, the situation here still remains rather shaky....

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