Why Beaten-Down EV Stock Polestar Surged 21% Today
Polestar Automotive (NASDAQ: PSNY) stock zoomed today and was up 17% as of 12:20 p.m. ET after clocking 21.1% gains in the early hours of trading today. The Swedish electric vehicle (EV) maker reported a sharp sequential jump in its deliveries for the second quarter, a day after CEO Thomas Ingenlath abruptly resigned. The two updates were enough to trigger a buying frenzy in the EV stock that's lost more than 70% value in one year alone.
Polestar's deliveries jumped 82% to 13,150 cars in Q2 versus its first quarter. However, that headline number only reveals half the story.
Polestar's revenue still fell 26% year over year to $918 million for two reasons: Its deliveries fell 17% year over year even as higher discounts to boost sales amid rising competition ate into the EV maker's top line and margins. Polestar reported a negative gross margin of 3.2% in Q2 versus a gross margin of 1.7% in the year-ago quarter.
Source Fool.com
