Polestar: 1-For-30 Stock Split Changes Nothing
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The Asian Investor31.12K FollowersFollow5ShareSavePlay(11min)CommentsSummaryPolestar remains a sell as persistent losses, missed delivery targets, and weak EV demand undermine confidence in its path to profitability.Despite 36.5% Y/Y delivery and 48.8% Y/Y revenue growth in Q3, PSNY's negative gross margins and $1.6B net loss in the last 9 months highlight severe profitability challenges.Polestar had some success raising capital, but will continue to have to raise cash going forward, and potentially dilute shareholders.Recent launches of Polestar 3 and 4 SUVs may drive future growth, but the EV company still relies on external funding and faces harsh market conditions.PSNY's valuation reflects deep investor skepticism and ongoing operational risks. I continue to have a sell rating on PSNY. teddyleung/iStock Editorial via Getty Images Polestar (PSNY)’s shares have slumped 61% since my last sell recommendation, highlighting both a challenging company setup as well as declining confidence in EV enterprises more generally. As an example, Ford (This article was written byThe Asian Investor31.12K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure:I/we have a beneficial long position in the shares of RIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.