Yangtze River Business Daily reporter Huang Cong
Backed by Volvo and Geely, Polestar has limited room to survive.
According to the news on June 2, the stock price of Polestar Auto (NASDAQ: PSNY) has fallen to $0.783 per share, not only hitting a record low, but also the stock price has been below $1 for 8 consecutive trading days.
Recently, Polestar announced the postponement of the release of its 2023 annual report and fourth quarter 2023 report.
Judging from past performance, in 2021, 2022 and the first three quarters of 2023, Polestar has accumulated losses of US$1.941 billion (equivalent to about 14.1 billion yuan at the current exchange rate).
In terms of sales, in the first quarter of 2024, Polestar deliveries fell by 53% compared to the same period last year, and new car registrations fell by 70%.
Visual China Diagram
Domestic sales in the first quarter were only 635 units
Polestar's share price fell below $1 per share, and there is a risk of delisting.
On June 2, it was reported that the share price of Swedish electric vehicle manufacturer Polestar has fallen to $0.783 per share, not only hitting a record low, but also below $1 for 8 consecutive trading days.
The NASDAQ requires that the stock price of a publicly traded company be kept above $1 at least and if the closing price is below $1 for 30 consecutive trading days, the company will receive a delisting notice.
Not only that, recently, Polestar officially released information saying that the company admitted to receiving a violation notice from Nasdaq. Polestar mentioned in the official release that due to the failure to file its annual report for the fiscal year ended December 31, 2023, the company has received a notice from the New York Nasdaq Stock Exchange confirming that the company has not complied with the relevant listing rules of the New York Nasdaq Stock Exchange, which require the timely filing of all required periodic financial reports with the SEC.
According to the data, Polestar Automotive (China) Group Co., Ltd. was established on March 11, 2020, registered in Yecheng Road, Jiading Industrial Zone, Shanghai, and its legal representative is Li Yaru.
Polestar is the global high-performance electric vehicle brand jointly owned by Volvo Car Group and Zhejiang Geely Holding Group.
On October 17, 2017, Polestar's first model, the Polestar 1, was officially unveiled.
On June 24, 2022, Polestar and special purpose acquisition company (SPAC) Gores Guggenheim announced that they have completed their business combination and officially listed on Nasdaq under the new ticker symbol "PSNY".
However, Polestar car sales were not ideal. According to the data, from 2020 to 2022, the company's global sales were 10,200 units, 29,000 units and 51,500 units, respectively.
Among them, in 2021, Polestar sold 2,048 new cars in China, accounting for only 7% of global sales; In 2022 and 2023, the official has not announced the specific sales volume in China, but from the data of compulsory traffic insurance, it can be seen that the number of vehicles on the insurance is only 1,717 and 992 respectively.
According to reports, Polestar has set an annual sales target of 80,000 units in early 2023.
In November 2023, Polestar announced that it had secured an additional $450 million in additional term loans from shareholders Volvo Cars and Geely Holding Group.
At the same time, Polestar lowered its overall sales target to 60,000 units. However, in 2023, Polestar delivered 54,600 vehicles worldwide, only 91% of the lowered target.
In January 2024, Polestar officially started mass deliveries of the Polestar4 nationwide, with new deliveries in China priced at 299,900 yuan to 399,900 yuan.
On January 2 of the same year, Chen Siying, Senior Vice President of Meizu Group and President of the Automotive Business Division, officially joined Polestar Auto and served as the Chief Operating Officer of Polestar Technology, with full responsibility for Polestar's marketing segment.
After taking office, Chen Siying integrated Polestar's marketing business system into three major segments: user growth, user development and user operation, and regarded "users" as the top priority in the marketing strategy.
In the first quarter of 2024, Polestar's domestic sales increased to 635 units, a year-on-year increase of 104.8%, but far less than the leading domestic new energy car companies.
The domestic Polestar 4 was recalled two months after it rolled off the assembly line
Polestar cars are not selling well, and they are also losing a lot of money.
In 2021 and 2022, Polestar's revenue was $1.337 billion and $2.462 billion, respectively, and its profit was a loss of $1.007 billion and $466 million, respectively.
In the first three quarters of 2023, Polestar had revenue of $1.844 billion and a profit loss of $468 million.
In less than three years, Polestar has accumulated losses of US$1.941 billion (about 14.1 billion yuan at current exchange rates).
Recently, Polestar announced the postponement of the release of its 2023 annual report and fourth quarter 2023 report. The company said the delay in issuing the report was due to the need to finalize the statement of accounting misstatements for 2021 and 2022, which need to be corrected in the 2023 report.
According to the data, in the first quarter of 2024, Polestar car deliveries fell by 53% compared to the same period last year, and new car registrations fell by 70%.
Under the loss, Polestar cars are also "whole counter".
In mid-May 2023, Polestar announced that it would freeze hiring globally and lay off 10% of its workforce.
At the time, Johan Malmqvist, Polestar's chief financial officer, said: "Based on the current macroeconomic environment, the company is looking to control costs. ”
In January 2024, Polestar announced that it plans to lay off about 450 employees worldwide, or about 15% of its workforce, due to the current market challenges.
A spokesperson for Polestar said the company needed to scale its business and operations as part of its business plan. "This involves reducing external spending, as well as a very sad piece of news: reducing the number of our employees."
Interestingly, sales were not good, and Polestar cars are still being recalled.
On March 29, 2024, the State Administration for Market Regulation issued an announcement showing that Polestar Auto Sales Co., Ltd. was entrusted to file a recall plan with the State Administration for Market Regulation in accordance with the requirements of the Regulations on the Administration of Recall of Defective Automobile Products and the Implementation Measures of the Regulations on the Recall of Defective Automobile Products. With immediate effect, it has decided to recall some of the 2023-2024 domestically produced Polestar 4 BEVs produced between November 29, 2023 and February 1, 2024, totaling 1,867 units.
According to Polestar, some vehicles within the scope of this recall may trigger brake control downgrading due to software problems with the brake controller, resulting in the failure of functions such as braking electronic power assistance, weakening braking efficiency, and posing potential safety hazards.
Polestar reminds users that if the vehicle instrument indicates a braking system failure, it is recommended to keep a safe distance from the vehicle and increase the brake pedal force when braking.
According to the announcement, Polestar Motors will use vehicle remote upgrade (OTA) technology to upgrade the software for vehicles within the scope of the recall free of charge; For vehicles that cannot be upgraded via OTA technology, Polestar Motors will proactively contact the relevant users to provide a free upgrade to eliminate potential safety hazards.
It is evident that the Polestar 4 electric model produced by Polestar is no longer off the assembly line for four months, and two months at the shortest.
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