The following is a summary of the Polestar Automotive Holding UK PLC (PSNY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Polestar reported a global vehicle sales increase of 6% in 2023 to 54,600 cars, despite revenue being down 3% due to channel mix and higher discounts.

• Gross profit for 2023 was negatively impacted by a non-cash impairment charge of $450 million, resulting in a gross loss of approximately $415 million. Excluding charges, gross profit would have been roughly at breakeven.

• Operating cash outflow was approximately $1.9 billion, driven by significant negative working capital adjustments of about $800 million mainly due to higher inventory levels.

• For Q1 2024, revenue was down about $200 million, gross profit margin was negative around 9%, and operating cash outflow was $230 million.

Business Progress:

• Polestar is focusing on selling the Polestar 2 and preparing the network for product ramp up including the launch of Polestar 3 and Polestar 4.

• Increased investment in retail distribution models and marketing for new models to drive commercial performance.

• Expansion into new markets in 2025 including France, Czech Republic, Slovakia, Hungary, Poland, Thailand, and Brazil.

Opportunities:

• Strategic initiatives to increase car volume and revenue through market expansions and a revamped retail distribution model.

• Introduction of new SUV models (Polestar 3 and Polestar 4) expected to drive future sales and revenue.

Risks:

• Future financial stability could be impacted by import duties and continued pricing pressures in global EV markets, especially China.

• Short-term uncertainties related to import duties before production in new North American and European facilities commences.

More details: Polestar Automotive IR

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