Why Is Polestar Automotive Stock Surging Thursday?

Author: Lekha Gupta | August 29, 2024 12:09pm

Polestar Automotive Holding (NASDAQ:PSNY) shares are trading higher after the company reported a sequential increase in second-quarter deliveries.

The company reported deliveries of 13,150 cars, an increase of 82% Q/Q and bringing global deliveries for the first half of the year to 20,371. The company disclosed significant growth in the U.S., Sweden, Norway, and Germany.

Concurrently, the company stated that effective management strategies enhanced inventory turnover, reducing stock by about 30% compared to the fourth quarter of 2023.

As of June-end, Polestar’s cash and equivalents totaled $669 million. Yesterday, Polestar named Michael Lohscheller as the new CEO, effective October 1, 2024, succeeding Thomas Ingenlath.

Outlook: As previously reported, the company said sales momentum in the second quarter positively affected inventory levels and cash flow.

Polestar is optimistic about a stronger second half of the year, with expectations of a notable boost in the fourth quarter as sales of its two premium SUVs increase.

This month, Polestar began delivering the Polestar 4 SUV coupé in Europe, with initial vehicles reaching customers in Germany, Norway, Sweden, the Netherlands, Denmark, and Belgium.

Also, the company stated that the production of the luxury SUV, Polestar 3, has started in South Carolina, USA, with the first cars expected to be delivered to customers in the coming weeks.

According to Benzinga Pro, PSNY stock has lost over 70% in the last 12 months year. Investors can gain exposure to the stock via SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL).

Price Action: PSNY shares are up 15.46% at $1.0898 at the last check Thursday.

Photo by Jeppe Gustafsson on Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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