Polestar Stock Analysis (September 2023)

Should you buy Polestar stock? Ticker: PSNY. Join 10,000 investors: https://www.overlookedalpha.com Polestar contracts out its manufacturing to Chinese firm Geely. This helps on costs and should allow Polestar to ramp production quicker than rivals. Second, Polestar has already built up an impressive lineup of new cars. They look sleek and they’re well received with ranges up to 600 kilometers. The company delivered 52000 vehicles in 2022 and should deliver between 60-70000 this year. On the negative side, Polestar missed revenue estimates in the latest quarter and not all of Polestar’s models are eligible for US tax credits. This makes them more expensive than the competition. That’s important since a report from the New York Times claims that China is flooding the market with cheap electric vehicles. This is leading to falling prices across the board. According to reports, Chinese car exports were up 86% this year surpassing Japan. Another complicating factor is that Polestar’s manufacturer Geely also builds cars for Volvo, Lotus and Zeekr which is rumored to be seeking an IPO. Geely is clearly spreading its risk and its worth wondering if investors should do the same. #psnystock #stocks #investing #overlookedalpha