Hump Day proved to be something of a street obstacle for electric vehicle (EV) maker Polestar Automotive(NASDAQ: PSNY). On a large piece of quite discouraging news, investors sold out of the company's stock early in the day, before it recovered to land weakly in positive territory at market close. The market is currently looking for bargains in the EV space, and some obviously consider Polestar to be a potential recovery story.
Financial filing delayed once more
Late Tuesday, Polestar divulged in a regulatory filing that it is currently unable to file its annual and fourth-quarter reports to the Securities and Exchange Commission (SEC) by the filing deadline.
This has actually passed, as it was April 30. The EV manufacturer said it is unable to compile all data needed for completion. This includes "the evaluation and quantification of certain errors" in 2021 and 2022 financial documents. It did not get more specific.
This marks the second time Polestar has delayed the filing of those results, so the initial market reaction to the news was entirely understandable. Compounding this, the company did not make any mention of when it might rectify the situation. Originally, it was to unveil its fourth-quarter figures at the end of February.
Good timing for bad news
Over the past few days, the gloom that blanked the EV sector has lifted somewhat, with numerous high-profile stocks in the space enjoying something of a rally. So the timing was on Polestar's side; however, the new delay is a troubling development with a company that has experienced significant struggles. Investors should watch how the fourth-quarter and full-year reporting plays out, and while they do, be very cautious about this stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
