Why Is Polestar (PSNY) Stock Down Today?

  • Polestar (PSNY) stock is dropping due to a larger loss in the first half of 2022.
  • The company attributes this loss to its merger and commercial expansion.
  • Polestar also intends to keep its delivery guidance for the year.
Close up Polestar logo with electric car in store. Polestar (PSNY) is a Swedish automotive brand owned by Volvo Cars and Geely

Source: Robert Way / Shutterstock.com

Polestar (NASDAQ:PSNY) stock is falling on Thursday following the release of its earnings data for the first half of 2022.

The big news from the report is the company’s operating loss of $885.2 million. That loss is $520.5 million wider than the $364.7 million loss reported in the same period in the year prior. This represents a 143% year-over-year (YOY) increase in operating loss.

According to Polestar, that widening loss is the result of its “continued commercial expansion.” The company also attributes it to a one-time share listing cost of $372.3 million in connection to its merger with Gores Guggenheim.

Still, investors aren’t reacting well to the news; Polestar’s widening loss comes alongside increasing revenue. The electric vehicle (EV) company reported revenue of $$1.04 billion in the first half of the year. That’s a 95% increase from the $534.8 million reported in the first half of 2021.

PSNY’s Guidance Is Still Strong

Polestar CEO Thomas Ingenlath said the following in a news release:

“We made important progress in the first half of 2022 as we doubled revenues and volume, and successfully listed on the Nasdaq stock exchange in New York. In addition, we maintained strong momentum in our global order take and expect to deliver 50,000 cars to our customers this year, meeting our 2022 sales guidance.”

PSNY stock is down 11.4% as of Thursday afternoon and down about 42% since the start of the year.

Investors looking for more recent stock market news will want to stick around!

We’ve got all of the latest stock market coverage that traders need to know about for Thursday! That includes what has shares of MicroStrategy (NASDAQ:MSTR), Mullen Automotive (NASDAQ:MULN) and ContextLogic (NASDAQ:WISH) stock in the news today. You can get all of those details from the following links!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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