Investing.com -- Polestar Automotive shares plunged 9.8% premarket Thursday after the electric vehicle maker reported declining revenue and cut its full-year outlook, citing challenging market conditions and slower-than-expected sales of new models.
The EV manufacturer posted preliminary third-quarter revenue of $550.7 million, down 10% YoY. Adjusted EBITDA loss narrowed to $180.5 million from $252.3 million a year earlier. The company did not provide EPS figures.
For the first nine months of 2024, revenue fell 21% to $1.46 billion as global vehicle sales of the Polestar (NASDAQ:PSNY) 2 declined amid higher discounts in a competitive market. The gross margin turned negative at -2.4% compared to a positive 1.0% in the same period last year.
Polestar slashed its 2024 guidance, now expecting a mid-teens percentage decline in full-year revenue versus its previous outlook for flat revenue. The company also anticipates a negative gross margin around 2023 levels for the full year, abandoning earlier expectations of positive gross profit in Q4.
The company said the lowered guidance comes as its fourth-quarter product mix was negatively impacted by fewer-than-expected Polestar 3 and Polestar 4 sales. Other one-time events also contributed to a difficult Q4 for the company, including a market value adjustment of inventory as well as continuing market pressure from discounting.
However, they added: "A solid order intake for new models in late Q4 signals an encouraging start to 2025."
The automaker secured over $800 million in 12-month term facilities from several banks in December and is working to obtain an additional $400 million facility. Approximately 25% of the proceeds will repay other loans, with the remainder supporting working capital needs.
Polestar also announced plans to restate financial results for 2022, 2023 and parts of 2024 due to balance sheet errors related to tooling assets.