Written by Cláudio Afonso | LinkedIn | X
Polestar is set to release its first quarter financial results ahead of the market open on Tuesday. Shareholders are anticipating insights into the company’s demand trajectory, the impact of Volvo’s recent decision to scale back its investment in Polestar, and the stock’s performance, which has plummeted 63 percent year-to-date.
More than 110 questions were asked over the last weeks and the most upvoted ones will be answered on Tuesday in the earnings conference call by Polestar’s chief executive Thomas Ingenlath and CFO Per Ansgar.
These questions were gathered through the Say Technologies platform, where retail and institutional shareholders can drop their questions, and the most upvoted ones are answered by the management.
The most voted question published through the Say Technologies platform focuses on financial performance and profitability. The retail shareholder asked, “What plan is in place to aid in recovering Polestar’s stock price over the next 12-24 months?”. With 503 votes, the question was the most upvoted one representing a total of 75,500 shares.
Despite today’s surge of nearly 7 percent — as of the time of writing — Polestar’s stock is still losing about 63 percent after weaker-than-expected deliveries in the first quarter of the year (7,200 vehicles) and multiple delayed financial results.
With 291 votes and representing 95,100 shares, the second most popular question asks for an update on the share buyback claiming the management teased it in the previous earnings call.
“Any news on the share buyback that was mentioned on the last call? The share price has taken a beating,” a retail shareholder asked.
The third most upvoted question asks the chief executive about his confidence in increasing the demand for Polestar vehicles. The company is expected to unveil tomorrow its delivery numbers from the second quarter of the year after having delivered 7,200 electric vehicles in the first three months.
The fourth-ranked question aims to get a clear picture of the impact of Volvo’s stake reduction on Polestar. “What consequences do you see from Volvo stepping away?” the shareholder asked garnering 167 votes that represent over 20 thousand shares.
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The automaker, which held a 48.3 percent stake in Polestar by the end of 2023, said last Friday it will adjust its second-quarter 2024 results to reflect the $450 million impairment charges reported by Polestar. Volvo clarified that doesn’t expect a big impact as it reduced its stake to 18 percent in early May.
The fifth question is also related to Volvo, however, it focuses on the possibility of partnering with the automaker in North America to allow better service.
“Are there any plans to partner with Volvo in North America to allow Polestar owners to utilize their service network as authorized service providers and users/owners? I’m 500-700 miles from my nearest Polestar service center and 10 miles from a Volvo Dealership & service center,” the shareholder asked.
On Sunday, Cantor Fitzgerald analyst Andres Sheppard issued a research note, maintaining the firm’s optimistic outlook on Polestar, Geely’s electric vehicle (EV) brand.
The note follows the 2023 financial results published by the EV maker last week reporting wider losses.
Sheppard reiterated the firm’s 12-month price target of $5 and the overweight rating for Polestar, stating, “Our 12-month $5 price target and Overweight rating are unchanged, pending a full model update”.
Last week, the company delivered the first units of the Polestar 3 at its headquarters in Gothenburg, Sweden. Earlier in the day, the company said it would start offering a new entry-level variant for the SUV with the introduction of a new Long Range Single Motor variant.
Earlier in the week, the EV maker launched the refreshed Polestar 2, featuring design updates, a revamped pack structure, increased range, and more individual options. Since the launch of the first iteration, the company has delivered more than 160,000 units across 27 markets.
Written by Cláudio Afonso | LinkedIn | X
