Polestar’s Financial Crossroads: Surging Sales Amid Deepening Losses

The electric vehicle manufacturer Polestar Auto (ADR/A) finds itself navigating a complex financial landscape. Impressive delivery growth contrasts sharply with substantial cash burn, creating a classic growth-stage dilemma that has investors questioning the company’s path to sustainability.

Polestar’s first-half 2025 results present a paradoxical picture. Retail deliveries surged by a remarkable 51%, reaching 30,319 vehicles, while revenue climbed 56% to $1.4 billion. Despite these robust growth figures, the company reported troubling profitability metrics. A GAAP gross margin of -43.07%, primarily driven by significant depreciation charges, and an earnings per share of -$0.49?missing analyst expectations by $0.35?highlight ongoing financial challenges.

Despite these mixed results, management maintains an optimistic outlook, projecting annual sales growth between 30-35% through 2027. However, the company’s... Read more...