How Can Polestar Stock Recover Back To $10 - Deliveries Are Up!
Polestar ($PSNY) had an impressive debut on the public markets in 2021, however, its shares have dramatically dropped by more than 70% from its peak. I appreciate and acknowledge the long-term potential of the brand, I do so knowing the brand is heavenly undervalued.
Polestar's potential is like that of Apple, both company shares an impeccable sense of design language fuelled by elegance and a products line-up to be marvel at.
Apple is the Gold Standard for a great company with great marketing, great management and great products. The more characteristics Polestar shares with Apple, the more my confidence rises. $APPLE $PSNY
I believe the Polestar shares can indeed recover rather sooner than later, the current price per share is $3.60 and the market cap currently sits at $7.78B. If one were to acquire Polestar as a company at the moment, it would be under value at its current market cap.
The most important thing is that the buyer would have to consider the potential for the company to make the purchasing money back within 10 years.
The incredible thing is that Polestar made $2.5B last year in revenue in 2022. They also delivered over 51,000 EV's in 2022 now going into 2023, the company intends to make and deliver 80,000 vehicles which we could see the revenue climb to $3B - $3.5B approximately.
The following year in 2024 I presume Polestars will deliver 100,000 plus vehicles as an estimate which would mean that the revenue once again would perhaps climb to $4B - $4.5B approximately.
If my calculations are correct, this means that Polestar as a brand could make between $7B - $9B during the next two years alone, the company would be successful at eclipsing its own market cap of $7.78B at the current time of writing, as of the 4th of April 2023.
Polestar is an EV brand that delivers elegance and a simplified approach, as evidenced by its upcoming cars and its rapid expansions into new markets. The company's latest earnings show solid progress in the form of delivery volumes, revenue growth and investments by its parent companies Volvo and Geely.
Thomas Ingenlath, CEO of Polestar, is proud of the progress made in 2022 and the impressive teamwork which enabled them to exceed their 50,000 global volumes goal. Looking ahead to 2023, Ingenlath expects regular fluctuations but is confident they will continue to effectively manage supplies to meet the increasing demand for Polestar 2, commence first shipments of Polestar 3 and launch Polestar 4.
Polestar is a rare exception in the industry, making substantial progress and showing remarkable execution. Established brands Volvo and Geely provide the company with considerable assistance, including their factories, engineers, and designers - enabling more efficient production and lower costs.
In comparison to rivals Lucid and Rivian, Polestar delivered 51,491 vehicles with a record gross profit in FY22, while Lucid delivered 4,369 and Rivian delivered 20,322 vehicles respectively with a negative gross margin.
Looking ahead, the company plans to launch Polestar 3 this year followed by Polestar 4 and 5 in subsequent years; additionally, it is growing its presence in foreign markets particularly outside Europe where awareness of its brand remains low.
Polestar recently declared its fourth-quarter performance and the results have been remarkable. Revenue skyrocketed by a whopping 67% YoY to $985.2 million due to successful deliveries led by the Polestar 2 and expansion into new markets.
Costs and expenses were managed well which resulted in a flip from negative $(200,000) to a gross profit of $62 million (with a margin being 6.3%). Operating spending also decreased as SG&A saw only 1% growth while R&D dropped 37%, leading to an improved year-over-year operating loss of $(205) million (versus $(337) million).
Net loss similarly narrowed to $(262) million compared with the same period the prior year. The compelling FY23 forecast for global volume is expected to reach 80,000, up 60% YoY, owing to the trend of continued success for the Polestar 2.
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