Polestar Automotive Holding UK PLC (NASDAQ: PSNY), one of many small electric vehicle (EV) companies, cannot sell many cars, nor can it make any money. It needs help selling vehicles in the United States. One solution is to offer more charging stations, which makes it more convenient to market its vehicles. Like Ford and General Motors, Polestar will use Tesla’s charging station footprint, the largest in the country. (These are the 13 biggest EV business failures in American history.)
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Polestar sold a mere 12,076 vehicles in its most recently reported quarter. Meanwhile, in its latest quarter, Tesla sold about 420,000. Polestar has virtually no gross profit. It had an operating loss of $119 million in the last quarter on revenue of $546 million. The top line grew too slowly for an emerging EV company—up only 21%.
A recent unforced error made certain 2023 would be a tough year. The company announced, “Polestar was recently informed that additional time for final software development of the new all-electric platform shared by Volvo Cars is needed and that the start of production of Polestar 3 is now expected in the first quarter of 2024.”
People say they do not buy electric cars because they believe there are too few charging stations. Without Tesla’s 12,000 stations in North America, Polestar could not overcome this problem on its own. However, each time a person pulls a Polestar up next to a Tesla charging station, they are reminded of which is the dominant brand and the industry leader.
Anyone who wants to be reminded of what a dumpster fire Polestar is in terms of its financials and unit sales only has to look at its stock. In the past year, it is down 61%, while the market is 14% higher.
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