Polestar Q3 loss narrows, expects hit from rising prices

By Marie Mannes

(Reuters) – Polestar on Friday reported a smaller third-quarter working loss as income greater than doubled and the corporate lower spending, sending shares hovering 25% in early buying and selling.

Nevertheless, the electrical car (EV) maker warned that greater uncooked materials prices would begin to harm later within the 12 months.

The Swedish carmaker, based by China’s Geely and Volvo Automobiles, posted an working lack of $196.4 million, down from $292.9 million a 12 months in the past, whereas income rose to $435.4 million from $212.9 million.

Polestar, which listed on the Nasdaq trade in June by way of a merger with a special-purpose acquisition firm (SPAC), mentioned rising prices for uncooked supplies used to make its batteries had not but totally hit due to set contracts.

Redburn analyst Charles Coldicott mentioned that whereas the shares rose there was nothing within the convention name with analysts that supported this response.

Chief Monetary Officer Johan Malmqvist informed Reuters Polestar would face greater prices within the fourth quarter, whereas worth will increase for its vehicles this summer time had been gradual to kick in.

“The total extent of that may then… partly offset the uncooked materials prices,” he mentioned, including that the carmaker anticipated to lift costs additional.

Malmqvist mentioned as a result of a lot of Polestar’s price base is in China, unfavourable trade charges hit the corporate within the third quarter and can proceed within the fourth.

Provide chain bottlenecks, together with a world semiconductor scarcity, have made it more and more troublesome for carmakers to satisfy targets.

However Chief Govt Thomas Ingenlath mentioned Polestar was on observe to ship 50,000 vehicles in 2022.

The corporate delivered 9,215 automobiles within the third quarter, whereas deliveries for the primary 9 months of 2022 rose 100% to about 30,400 vehicles.

Ingenlath mentioned the remaining 20,000 vehicles wanted to satisfy its goal have been produced.

“We are actually in a reasonably snug place of ‘solely’ having to ship these vehicles and never fear anymore in regards to the manufacturing”, the CEO mentioned.

(This story has been corrected to vary share response to 25% from 29%)