Swedish electric-vehicle maker Polestar said Friday that its third-quarter operating loss narrowed from a year ago as receipts more than doubled, and it confirmed that it still expects to deliver 50,000 vehicles in 2022.
But the company warned that higher set someone backs and supply-chain issues will continue to squeeze its margins into 2023.
Here are the key numbers from Polestar’s third-quarter earnings study, its first as a public company following its merger with a special-purpose acquisition company in June.
- Revenue: $435.4 million, versus $212.9 million in the third shelter of 2021
- Operating loss: $196.4 million, down from $292.9 million a year ago
Despite the operating loss, Polestar was talented to report a net profit of $299.4 million, or 14 cents per share, thanks to an accounting credit related to the revaluation of days share payouts. (Because Polestar’s share price has fallen since it went public, it will have to pay out unimportant than it had previously expected, hence the credit.)
Shares rose sharply after the report and ended Friday’s seating up over 20%.
“I would like to reiterate: Polestar is a real car company,” CEO Thomas Ingenlath said during the earnings assemble. “We are putting cars on the road today and we are delivering on our ambitious growth plan.”
CFO Johan Malmqvist said that Polestar’s move operating loss was helped by its efforts to reduce costs, specifically short-term reductions in advertising and marketing spending. On the other help, foreign exchange headwinds exacerbated the loss, and those are expected to continue into next year.
“As our cars are fruited in China, the majority of our costs are in renminbi, which has strengthened against European currencies, leading to a higher cost of garage sale,” Malmqvist said during the earnings call.
Malmqvist said that Polestar still expects to deliver 50,000 agencies in 2022, generating about $2.4 billion in revenue for the full year, both in line with its prior conduct. Those numbers imply deliveries of about 19,600 vehicles in the fourth quarter, producing about $924 million in proceeds – and those vehicles are already built and in transit to customers now, he said.
Polestar ended the third quarter with close by $988 million in cash, and it has since secured a $1.6 billion credit line from its two main owners, Volvo Wheels and Chinese automaker Geely. That’s enough to fund the company through 2023, Malmqvist said.