Polestar Automotive(NASDAQ: PSNY) seems to be gaining momentum as electric vehicle (EV) deliveries accelerated in the second quarter, and management foresees even stronger sales as the year progresses.
That momentum is lifting shares of the EV maker, which is majority-owned by Geely Holding and Volvo. As of 1 p.m. ET Friday, Polestar stock was up by 12.2%. That followed its 13% gain on Thursday as investors absorbed its earnings report and news of a new CEO.
Producing EVs in the U.S. for the first time
Effective Oct. 1 Michael Lohscheller, who previously served as CEO of traditional automotive marque Opel and EV start-upsVinFast Auto and Nikola, will take over as Polestar CEO. That appointment comes as the company is beginning to quickly ramp up production volume. Its second-quarter vehicle deliveries soared by 82% from the first quarter to 13,150 units.
Polestar also recently produced its first vehicle in the U.S. on a production line in South Carolina at a plant that the EV maker shares with Volvo. The U.S. facility will also supply cars to the European market.
But it's the second-quarter update that has investors driving shares higher. The company says it has been seeing "strong momentum especially in the USA, Sweden, Norway and Germany." Polestar also said it believes sales will gain strength in the second half of 2024, and accelerate in the fourth quarter as interest in its two premium SUV offerings increases.
The company ended the second quarter with about $670 million in cash and equivalents on its books. Investors seem to be thinking that will be enough to carry it through as its sales growth gains traction.
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Howard Smith has positions in Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
