Polestar's Stock Takes A Big Hit After Cutting 2023 Delivery Guidance!
On Thursday the 11th of May, the price of Polestar Automotive's (NASDAQ: $PSNY) stock decreased by 12.5%, after the Swedish luxury electric vehicle company published its Q1 2023 report.
The stock value of Polestar fell to a volume price of $3.21 on Monday, the electric vehicle maker, this is a significant dip after the brand reduced its delivery projection for the year 2023. This cut in expectations has resulted in a decline in their stock price.
Polestar distributed 12,076 cars in the first quarter, a 26% jump compared to the same time period last year. These all happened to be Polestar 2 coupes; although the company had manufactured limited amounts of the ultra-luxurious plug-in hybrid sports car, the Polestar 1, from 2019 to 2021.
The total number of vehicles expected to be delivered this year is now between 60,000 and 70,000 with an annual growth range of 16% to 36%, down from its prior guidance of 80,000 vehicles. Additionally, the company has lowered its anticipated gross margin to 4%, from its earlier prediction of 4.9%.
The EV maker lowered vehicle delivery guidance, due to a disconnect in the expected start of production of its Polestar 3. Owing to software difficulties, its all-electric performance SUV will now only commence rolling off the assembly line at the beginning of 2024 instead of mid-2023.
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Polestar went public in June 2022 after merging with a special purpose acquisition company (SPAC). It had previously been the performance-car division of Volvo Cars, a Chinese automobile entity owned by Geely. Volvo still holds a substantial share of Polestar.
Immediately after the SPAc merger, $PSNY share went up as high as $13 per share and this was in June 2022, Polestar stock price has fallen more than 75% since it's IPO SPAC Merger.
Polestar's operations in the quarter required an outlay of $283.4 million, compared to producing cash flow of $40.5 million in the corresponding period a year before, largely due to their expansion. Despite this, they finished the period with $884.3 million in cash reserves.
Polestar is increasing its attention on controlling costs by implementing a global hiring freeze and reducing its workforce by 10%.
SEE ALSO: Polestar's Cuts 10% of Workforce
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