Shares of Electric Vehicle maker Polestar Automotive (NASDAQ:PSNY) are under pressure today after its second-quarter numbers failed to race past estimates. While revenue rose by 16.3% over the prior year to $685.2 million, the figure still lagged consensus by $71 million. Furthermore, its net loss per share of $0.14 came in wider than estimates by $0.01.
During the quarter, gains from increased Polestar 2 sales and pricing actions were partially negated by increased discounts and changes in product mix. The Swedish company delivered 15,765 vehicles in Q2. This was an impressive 36% jump in vehicle deliveries over the prior year. Furthermore, while global deliveries stood at 27,841 in the first half of the year, Polestar still estimates deliveries of 60,000 to 70,000 vehicles for the entire year.
The company is ramping up deliveries of the upgraded Polestar 2 and anticipates beginning production of the Polestar 4 in November and of the Polestar 3 in Q1 2024.
Overall, the Street has a consensus price target of $6.25 on Polestar, alongside a Strong Buy consensus rating. After today’s price decline, this implies a mouth-watering 79.3% potential upside in the stock.
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