Polestar Automotive (PSNY) Q4 2023 earnings summary

Executive summary

• Revenue for 2023 was $2,377.7 million, down 3% year-over-year, mainly due to higher discounts and lower carbon credit sales, partially offset by increased vehicle volumes.

• Gross profit margin was in line with guidance before non-cash impairment charges of around $450 million related to Polestar 2 assets and inventory.

• First customer deliveries of Polestar 3 commenced, with production in South Carolina on track to start at the end of summer 2024.

• Errors in 2021 and 2022 audited accounts have been corrected, with less than 5% impact on net loss in each year.

Financial highlights

• Gross loss was $414.7 million in 2023, compared to a gross profit of $98.4 million in 2022.

• Gross margin declined to -17.4% from 4.0% year-over-year.

• Operating loss increased 13% to $1,459.5 million; adjusted operating loss rose 59% to $1,459.5 million (excluding 2022 listing expense).

• Adjusted EBITDA was -$1,029.2 million, compared to -$790.5 million in 2022.

• Net loss widened to $1,173.3 million from $481.5 million year-over-year.

Outlook and guidance

• Q1 2024 preliminary results and Q2 2024 global volumes will be published on July 2, 2024.

• Management expects Polestar 3 deliveries to ramp up over the summer, with production in South Carolina starting at the end of summer.