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Polestar publishes full year 2023 results; sets the date for Q1 results and Q2 global volumes

Gross profit margin in-line with guidance, excluding non-cash impairment charges of around USD 450 million

Polestar reports its preliminary unaudited financial and operational results for 2023 and sets the date for Q1 2024 preliminary unaudited results as well as Q2 2024 global volumes on 2 July 2024.

Polestar’s 2023 gross profit margin was in-line with earlier guidance, prior to recognizing non-cash impairment charges of around USD 450 million, relating to Polestar 2 assets and inventory impairment.

Per Ansgar, Polestar CFO, comments: “With the 2023 preliminary results now published, Polestar and its auditors are finalising the process, and we now expect to file our Annual Report on Form 20-F in the coming weeks.”

The previously announced errors identified in the Company’s audited 2021 and 2022 accounts have now been corrected and as guided have an impact on net loss of less than 5% in each respective year – positively in one and negatively in the other.

The customer deliveries of Polestar 3 have now started and will ramp up over the summer. The first release of customers test-drive slots in Europe have been filled and production in South Carolina remains on track to start during the end of the summer.

Polestar expects to publish its preliminary unaudited results for the first quarter and global deliveries for the second quarter on 2 July before market open in New York. Management will host a live audio webcast on 2 July at 08:00 US Eastern Time (14:00 Central European Summer Time), with verified shareholders able to ask questions through the Say Technologies platform until Monday, 1 July accessible via the Polestar Investor Relations website.

Key financial highlights

The below table summarizes preliminary key financial results for the twelve months ended December 31, 2023:
(in millions of U.S. dollars)

For the year ended December 31,

% Change









Cost of sales




Gross (loss) profit




Gross margin (%)




Selling, general and administrative expense




Research and development expense




Other operating income (expense), net




Listing expense(1)



Operating loss




Adjusted operating loss(2)




(1) The listing expense represents a non-recurring, non-cash, share-based listing charge, incurred in connection with the business combination with Gores Guggenheim, Inc (GGI). on June 23, 2022
(2) Non-GAAP measure. See Appendix B for details and a reconciliation of adjusted metrics to the nearest GAAP measure.

  • Revenue decreased USD 67.3 million, or 3%, mainly driven by higher discounts and lower sales of carbon credits, partially offset by an increase in vehicle sales volumes.
  • Gross result decreased USD 513.0 million as the result of impairment of Polestar 2 intangible assets of USD 240.5 million an property, plant and equipment of USD 40.3 million, assets under operating lease of USD 48.9 million as well as increased inventory impairment of USD 120.1 million. Additionally, higher material and freight costs contributed to overall decrease, only partly offsetting lower warranty costs and positive foreign currency effect. The decrease is also attributed to decreased revenue, as stated above.
  • Selling, general and administrative expenses increased USD 115.0 million, or 14%. This increase is primarily due to higher advertising, sales, and promotional activities related to commercial campaigns and events for the Polestar 3 and Polestar 4 global launches.
  • Research and development expenses decreased USD 16.5 million, or 9% due to a decrease in amortization costs from internal development programs reaching program start now recognized in cost of sales. This decrease was partially offset by the continued investments in future vehicles and technologies.
  • Other operating income (expense), net changed from an expense of USD 0.3 million for the year ended December 31, 2022 to income of USD 68.5 million for the year ended December 31, 2023. This change is primarily due to positive foreign exchange effects on working capital, sales of plant operation services and a gain on disposal of assets held for sale.
  • Operating loss increased by USD 170.4 million, or 13%, with lower revenue, higher cost of sales including higher impairment of USD 450 million and a Q2 2022 one-time share-based listing charge of USD 372.3 million.
  • Adjusted operating loss of USD 542.7 million, primarily due to lower gross profit during the year ended December 31, 2023.

Cash flow highlights

The below table summarizes preliminary cash flow for the twelve months ended December 31, 2023:
(in millions of U.S. dollars)

For the yearended December 31,


Beginning cash








Foreign exchange effect on cash and cash equivalents


Ending cash 768.9

  • Operating cash outflow of USD 1,874.6 million, mainly driven by the net loss adjusted for non-cash expenses as well as negative changes in working capital due to higher levels of inventory and trade payable payments.
  • Investing cash outflow of USD 439.4 million, predominantly driven by intellectual property investments for Polestar 2, Polestar 3, and Polestar 4, partly offset by the divestment of the Chengdu plant for USD 153.6 million.
  • Financing cash inflow of USD 2,095.3 million, with proceeds from long-term related party loans with Geely and Volvo Cars, working capital facilities and short-term green trade revolving credit facility.

Preliminary key operational highlights

The below table summarizes key preliminary operational results as of and for the twelve months ended December 31, 2023:

For the year ended December 31,

% Change




Global volumes(1)




  • including external vehicles with repurchase obligations



  • including internal vehicles



For the year ended December 31,









Service points(4)




(1) Represents the sum of total volume of vehicles delivered for (a) external sales of new vehicles without repurchase obligations, (b) external sales of vehicles with repurchase obligations, and (c) internal use vehicles for demonstration and commercial purposes or to be used by Polestar employees (vehicles are owned by Polestar and included in inventory). A vehicle is deemed delivered and included in the volume figure for each category once invoiced and registered to the external or internal counterparty, irrespective of revenue recognition. Revenue is recognized in scenarios (a) and (b) in accordance with IFRS 15, Revenue from Contracts with Customers, and IFRS 16, Leases, respectively. Revenue is not recognized in scenario (c).
(2) Represents the markets in which Polestar operates.
(3) Represents Polestar Spaces, Polestar Destinations, and Polestar Test Drive Centers.
(4) Represents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar’s international expansion.

  • Global volumes increased 3,077 to 54,626 cars for the year ended December 31, 2023, an increase of 6% year on year.
  • Polestar has 192 retail locations and 1,149 service points across its markets, up 34 and 33 respectively, as compared to the year ended December 31, 2022.

Inventory and Polestar 2 assets impairment

  • Historically, Polestar tested assets for impairment under a single cash-generating-unit (‘CGU’) as all assets were concentrated around fewer product lines with largely the same assets in use to generate cash flows. With Polestar business growing and technologies in new car lines developing at a fast pace, the capital intensive assets used to generate each model have become largely independent over time and therefore started to generate independent cash flows. This led to the re-evaluation from 1 to 4 separate CGUs in late 2023, one for each existing car line, Polestar 2, Polestar 3 and Polestar 4 and the fourth one for early-stage projects.
  • In 2023, Polestar for the first time conducted an impairment assessment of the Company with the recoverable amounts of the separate CGUs. As a result of the recoverability analysis, Polestar determined that the book value of the assets related to Polestar 2 CGU exceeded its recoverable value by USD 329.7 million, and therefore recognized an impairment loss in cost of sales of USD 240.5 million for intangible assets, USD 40.3 million related to property plant and equipment and USD 48.9 million related to assets under operating lease.
  • Inventory impairment charges recognized in Cost of sales for 2023 amounted to USD 120.1 million. These charges were triggered by the lower than anticipated demand in certain key markets, which led to fewer cars being sold and an inventory buildup, alongside the impact from used cars which have started to come into inventory in a more meaningful way.

SOURCE: Polestar

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