$PSNY An EV Stock To Watch
The EV market has been hot since Tesla, Inc. (NASDAQ: TSLA) announced record Q2 deliveries last week. Following Tesla’s announcement, other EV manufacturers like Rivian Automotive, Inc. (NASDAQ: RIVN) and Polestar Automotive Holding UK PLC (NASDAQ: PSNY) joined the party by also reporting extremely positive delivery numbers. While RIVN stock jumped by as much as 54% on its deliveries, PSNY did not receive the same attention from investors as the stock only went up 5% on its announcement. Given the company’s performance this year, Polestar stock is one to keep a close eye on this week.
Polestar Fundamentals
Undervalued Stock?
After announcing a production cut for 2023 in its Q1 earnings call, PSNY reported record Q2 deliveries of nearly 16 thousand global deliveries – a 36% YoY increase. In this way, Polestar brings its total deliveries for 2023 to nearly 28 thousand – putting it on track to meet its 2023 forecast of 60 – 70 thousand deliveries.
Polestar is looking to maintain its deliveries momentum in the second half of the year as it intends to open up more than 20 permanent Polestar Spaces over the coming months and start deliveries of the upgraded Polestar 2. Through these actions, PSNY could be poised for yet another successful quarter in Q3 as its deliveries could continue to increase.
Despite the company’s positive developments, Polestar stock remains down 18.6% YTD and its record Q2 deliveries are yet to be appreciated by the market. In comparison, RIVN stock soared 54% on its Q2 delivery numbers, despite the fact that PSNY delivered 25% more vehicles in the same period.
Moreover, Polestar has a better gross margin of 3% compared to RIVN whose gross margin is at -80% which means that RIVN is actively losing money on each vehicle it sells. At the same time, PSNY boasts a P/S ratio of 28.87 while RIVN’s sits at a much higher 36.9 – indicating that Polestar stock is undervalued compared to RIVN stock whose market cap is more than double that of PSNY.
Making Deals
In addition to its impressive deliveries, PSNY is actively working to expand its market share in China as it entered into a JV with Xingji Meizu Group to develop Xingji Meizu’s existing technology platform into an operating system for PSNY’s vehicles sold in China. The new platform may increase PSNY sales in China, as the Chinese market generally has specific needs regarding software, since many services that are available in the West aren’t available in China, resulting in a lacking software experience in the Chinese market.
PSNY is also attempting to increase its share in the US market as it recently agreed with Tesla to adopt the new North American Charging Standard (NACS) to provide Polestar’s vehicles with access to Tesla’s expansive supercharging network. According to this deal, new Polestar vehicles sold in North America will be equipped with the NACS charging port starting in 2025 and adapters allowing existing Polestar drivers to access the network are expected in mid-2024. By having access to one of the largest charging networks in the US, Polestar’s vehicles could become more attractive to customers – potentially boosting sales.
Technical Analysis
PSNY stock’s trend is bullish, with the stock trading in an upward channel within a sideways channel between $3.45 and $3.86. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs, which are bullish indications. Meanwhile, the RSI is approaching overbought at 67 and the MACD is approaching a bearish crossover. It is also worth noting that the stock has broken its $3.86 resistance but is yet to consolidate and test that level as a support. If the stock bounces off the $3.86 support, it could mean that the stock has entered a new channel between $3.86 and $4.71.
As for the fundamentals, PSNY stock just witnessed a catalyst in the announcement of the Q2 record deliveries and has an upcoming catalyst in its Q2 earnings report on August 31. Considering the extremely positive news the company has been sharing recently, Polestar stock appears to be poised to run this week.
PSNY Forecast
While PSNY cut its 2023 delivery target by an average of 18.75%, the new target is still 25% more than the company’s record 51,491 deliveries in 2022 and is currently on track to reach the new target after achieving record Q2 deliveries. With the company also announcing exciting developments in its deal with Tesla and its JV in China, Polestar stock seems to poised to run this week as more investors become aware of these events’ potential. For this reason, Polestar stock is one to pay attention to over this month – especially with the company planning to release its Q2 earnings on August 31.
Polestar Fundamentals
Undervalued Stock?
After announcing a production cut for 2023 in its Q1 earnings call, PSNY reported record Q2 deliveries of nearly 16 thousand global deliveries – a 36% YoY increase. In this way, Polestar brings its total deliveries for 2023 to nearly 28 thousand – putting it on track to meet its 2023 forecast of 60 – 70 thousand deliveries.
Polestar is looking to maintain its deliveries momentum in the second half of the year as it intends to open up more than 20 permanent Polestar Spaces over the coming months and start deliveries of the upgraded Polestar 2. Through these actions, PSNY could be poised for yet another successful quarter in Q3 as its deliveries could continue to increase.
Despite the company’s positive developments, Polestar stock remains down 18.6% YTD and its record Q2 deliveries are yet to be appreciated by the market. In comparison, RIVN stock soared 54% on its Q2 delivery numbers, despite the fact that PSNY delivered 25% more vehicles in the same period.
Moreover, Polestar has a better gross margin of 3% compared to RIVN whose gross margin is at -80% which means that RIVN is actively losing money on each vehicle it sells. At the same time, PSNY boasts a P/S ratio of 28.87 while RIVN’s sits at a much higher 36.9 – indicating that Polestar stock is undervalued compared to RIVN stock whose market cap is more than double that of PSNY.
Making Deals
In addition to its impressive deliveries, PSNY is actively working to expand its market share in China as it entered into a JV with Xingji Meizu Group to develop Xingji Meizu’s existing technology platform into an operating system for PSNY’s vehicles sold in China. The new platform may increase PSNY sales in China, as the Chinese market generally has specific needs regarding software, since many services that are available in the West aren’t available in China, resulting in a lacking software experience in the Chinese market.
PSNY is also attempting to increase its share in the US market as it recently agreed with Tesla to adopt the new North American Charging Standard (NACS) to provide Polestar’s vehicles with access to Tesla’s expansive supercharging network. According to this deal, new Polestar vehicles sold in North America will be equipped with the NACS charging port starting in 2025 and adapters allowing existing Polestar drivers to access the network are expected in mid-2024. By having access to one of the largest charging networks in the US, Polestar’s vehicles could become more attractive to customers – potentially boosting sales.
Technical Analysis
PSNY stock’s trend is bullish, with the stock trading in an upward channel within a sideways channel between $3.45 and $3.86. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs, which are bullish indications. Meanwhile, the RSI is approaching overbought at 67 and the MACD is approaching a bearish crossover. It is also worth noting that the stock has broken its $3.86 resistance but is yet to consolidate and test that level as a support. If the stock bounces off the $3.86 support, it could mean that the stock has entered a new channel between $3.86 and $4.71.
As for the fundamentals, PSNY stock just witnessed a catalyst in the announcement of the Q2 record deliveries and has an upcoming catalyst in its Q2 earnings report on August 31. Considering the extremely positive news the company has been sharing recently, Polestar stock appears to be poised to run this week.
PSNY Forecast
While PSNY cut its 2023 delivery target by an average of 18.75%, the new target is still 25% more than the company’s record 51,491 deliveries in 2022 and is currently on track to reach the new target after achieving record Q2 deliveries. With the company also announcing exciting developments in its deal with Tesla and its JV in China, Polestar stock seems to poised to run this week as more investors become aware of these events’ potential. For this reason, Polestar stock is one to pay attention to over this month – especially with the company planning to release its Q2 earnings on August 31.