The shares of Sweden-based EV maker Polestar (NASDAQ:PSNY) stock are retreating about 9% today even though the electric vehicle company reported that its deliveries had surged in the second quarter. The automaker also confirmed that it had reduced its workforce by 15% this year, in-line with its previous commitment. On the negative side for PSNY stock, however, the company’s revenue tumbled 36% in Q1 versus the same period a year earlier.
Chinese automaker Geely owns about 24% of Polestar stock, while Volvo, Geely’s subsidiary, controls 18% of Polestar.
Surging Deliveries Amid Strong Reviews
In Q2, Polestar’s EV deliveries soared 80% versus the previous quarter to about 13,000. In the first half of 2024, the automaker handed over 20,200 EVs. Among the markets in which the company reported that it was seeing strong momentum were the U.S., Sweden, Norway, and Germany.
According to the automaker, the reviews of its two new SUVs by media outlets have been “stellar,” while many consumers have made reservations to test drive the new vehicles.
A Large Revenue Decline and Layoffs
In Q1, Polestar’s sales sank 36% versus the same period a year earlier to $345.3 million. Among the factors behind the decline were lower EV sales and higher discounts, the company reported. Additionally, Polestar reported that its Q1 sales were negatively affected by “complexities” related to its recognition of revenue by its China-based joint venture.
Meanwhile, the firm’s operating loss rose 5% or $11.8 million in Q1 versus the same period a year earlier. Finally, it generated a gross loss of $30.8 million in Q1, versus a gross profit of $23.2 million in Q1 2023.
Polestar noted that it had reduced its workforce by 15% this year, in-line with an announcement that it had made in January.
The Price Action of Polestar Stock
Heading into today, PSNY stock had climbed 35% in the previous five days, but the shares had slumped 40% in the preceding three months.
On the date of publication, Larry Ramer 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
