Polestar Automotive (PSNY) Q2 2024 earnings summary

Executive summary

• Q2 2024 global vehicle sales reached 13,150, up over 80% sequentially, with revenue rising nearly 70% to $575 million, driven by Polestar 2 growth and initial Polestar 3 deliveries, and strong momentum in the USA, Sweden, Norway, and Germany.

• Operating loss increased $18 million sequentially to $242 million, but improved 12% year-over-year; SG&A rose just 6% sequentially despite extensive launches, reflecting tight cost control.

• Inventory turnover improved by 30% compared to Q4 2023, supporting positive operating cash inflow and improved working capital.

• Cash and cash equivalents stood at $669 million as of June 30, 2024, with $300 million in new external funding secured.

• New CEO Mikael Lohscheller announced, effective October 1, 2024, bringing 25+ years of automotive experience.

Financial highlights

• Q2 2024 revenue was $575 million, up nearly 70% sequentially but down 17% year-over-year due to lower volumes and higher discounts; six-month revenue was $918 million, down 26%.

• Q2 gross loss was $4.2 million (gross margin -0.7%), with improvements from impairment releases and revenue normalization at the China JV.

• SG&A expenses increased 6% sequentially but fell 13% year-over-year due to cost management.

• R&D expenses rose $36 million (75%) year-over-year, mainly due to Polestar 2 IP amortization now in COGS.

• Q2 operating loss was $242 million, a $32 million year-over-year decrease; net loss for the six months was $541.3 million.

Outlook and guidance

• Stronger volumes expected in H2 2024, especially Q4, as Polestar 3 and 4 ramp up.

• Ambition to achieve double-digit gross margin by year-end as model mix shifts to higher-margin vehicles.

• Working capital expected to remain lean, with further inventory reductions planned.