Electric vehicle maker Polestar (PSNYW) has announced that its order intake rose in the fourth quarter of 2024, reviving hopes for a turnaround at the Swedish automaker.
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Polestar announced electric vehicle sales of 12,256 for Q4 of last year, up 5% from 11,640 a year earlier. At the same time, the company said that its order intake increased 37% year-over-year in the final quarter of 2024.
The improved results come despite poor market conditions and weak demand for electric vehicles that has hit start-up companies such as Polestar hard. PSNYW stock has declined 93% in the last three years to trade at just $0.21 per share, putting it deep down on the penny stock league tables.
A Potential Turnaround?
The stock of Polestar has been treated like a meme stock at various times, pumped and then dumped by retail investors. At the same time, the entire electric vehicle sector is struggling with a slowdown in demand among consumers, leading to scaled back production, price cuts, and layoffs across the industry.
Internally, Polestar has also struggled with its finances, delaying its quarterly financial reports several times as it deals with mounting cost pressures. Over the past year, the European automaker has replaced its CEO, head of design, chair of the board, and chief financial officer (CFO). Polestar is next scheduled to report quarterly financial results on January 16.
The latest sales and order data has revived hopes for a potential turnaround at the company.
Is PSNYW Stock a Buy?
No analysts on Wall Street cover Polestar’s stock. So instead we turn to the three month performance of the shares. As one can see in the chart below, PSNYW stock has declined 22% in the last 12 weeks.
