Swedish EV maker Polestar reports lower operating loss, confirms full-year guidance

Swedish electric-vehicle shaper Polestar said Friday that its third-quarter operating nonaccomplishment narrowed from a twelvemonth agone arsenic gross much than doubled, and it confirmed that it inactive expects to present 50,000 vehicles successful 2022.

But the institution warned that higher costs and supply-chain issues volition proceed to compression its margins into 2023.

Here are the cardinal numbers from Polestar's third-quarter net report, its archetypal arsenic a nationalist institution pursuing its merger with a special-purpose acquisition company successful June.

• Revenue: $435.4 million, versus $212.9 cardinal successful the 3rd 4th of 2021
• Operating loss: $196.4 million, down from $292.9 cardinal a twelvemonth ago

Despite the operating loss, Polestar was capable to study a nett net of $299.4 million, oregon 14 cents per share, acknowledgment to an accounting recognition related to the revaluation of aboriginal stock payouts. (Because Polestar's stock terms has fallen since it went public, it volition person to wage retired little than it had antecedently expected, hence the credit.)

Shares were up implicit 19% successful midday trading connected Friday pursuing the report.

"I would similar to reiterate: Polestar is simply a existent car company," CEO Thomas Ingenlath said during the net call. "We are putting cars connected the roadworthy contiguous and we are delivering connected our ambitious maturation plan."

CFO Johan Malmqvist said that Polestar's little operating nonaccomplishment was helped by its efforts to trim costs, specifically short-term reductions successful advertizing and selling spending. On the different hand, overseas speech headwinds exacerbated the loss, and those are expected to proceed into adjacent year.

"As our cars are produced successful China, the bulk of our costs are successful renminbi, which has strengthened against European currencies, starring to a higher outgo of sale," Malmqvist said during the net call.

Malmqvist said that Polestar inactive expects to present 50,000 vehicles successful 2022, generating astir $2.4 cardinal successful gross for the afloat year, some successful enactment with its anterior guidance. Those numbers connote deliveries of astir 19,600 vehicles successful the 4th quarter, producing astir $924 cardinal successful gross – and those vehicles are already built and successful transit to customers now, helium said.

Polestar ended the 3rd 4th with astir $988 cardinal successful cash, and it has since secured a $1.6 cardinal recognition enactment from its 2 main owners, Volvo Cars and Chinese automaker Geely. That's capable to money the institution done 2023, Malmqvist said.