Polestar Automotive Holding UK Plc (NASDAQ: PSNY) chief executive Michael Lohscheller says it’s a great idea to switch from a Tesla to one of his company’s electric vehicles.
Lohscheller touted his company for its “great cars” in an interview with CNBC this morning, adding “we have lots of contacts, lots of feedback – and we sense this sentiment too.”
Polestar’s new boss remains bullish even though the company ended last year with retail sales down some 15% on a year-over-year basis.
At writing, shares of the electric vehicle market are going for a fraction of the price at which they traded in late 2021.
Polestar is committed to improving sales in 2025
Polestar has been burning cash since its inception in 2020 and expects the cash-burn to continue for another two years still.
But the company is fully committed to improving sales, lowering costs, launching new products and grow the business overall during this time.
All we need now is execution for the credibility to come, according to CEO Lohscheller.
We have to demonstrate that we can execute this plan to see that reflected in the assessment of four company. We have to deliver on our commitments.
Nonetheless, Polestar stock is currently down about 15% versus its year-to-date high.
PSNY is seeing an increase in total order intake
Polestar is entirely focused on what’s in its control – “our cars and our increase in sales number,” as per Michael Lohscheller’s remarks on “Squawk Box Europe”.
He expressed confidence that Polestar will demonstrate its execution capabilities in the first quarter that may help the company’s share price to start picking up in the back half of 2025.
“Our orders intakes are up, a few things going in the right direction,” the chief executive revealed on Friday. PSNY’s total order intakes were up more than 37% on a year-over-year basis in Q4.
Polestar stock, however, does not pay a dividend to make it any easier for the investors to wait for the things to improve.
Cantor analysts recently downgraded Polestar stock
While Polestar’s new CEO is bullish on the company’s future, analysts at Cantor Fitzgerald seem to disagree. The investment firm downgraded their rating on the EV stock last week to “neutral”.
There has also been broader negativity surrounding electric vehicle companies following Trump’s victory in the US elections 2024.
That’s because the Republican leader is expected to repeal parts of the Inflation Reduction Act that currently incentivize the purchase of select battery-powered vehicles.
Still, a name that continues to do well amidst the uncertainty is Tesla Inc. However, experts attribute much of the strength in its share price to billionaire Elon Musk’s proximity to the US President and not to the company’s fundamentals per se.
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