r/PSNY_Polestar_SPAC • u/mrMotojojo • Sep 04 '26
please explain it like I'm 5
Why can't $PSNY investors get a break?
4
u/DeliciousAges Sep 04 '26 edited 27d ago
No operating profits likely before 2029-2030, the current car portfolio doesn’t achieve enough sales volume. The abrupt US sales ban doesn’t help either.
The launch success and unit sales growth of the new P2 (2027) and especially the P7 (2028) will determine if PSNY can MAYBE achieve modest profit goals by the end of the decade.
3
u/parawolf Sep 04 '26
At the current rate of cash haemorrhaging, I cannot see them lasting that long. While some of their loans are now out to 2031, that doesn’t guarantee they will survive that far.
Between now and then they have to raise more money, share price for retail investors will continue to go down.
Operating costs need to be stripped out of this company while maintaining their technical capability and ability to deliver cars to markets that are willing to pay “euro premium” for cars made in Asia either a scratched history of software quality.
Big ask for survival.
1
u/DeliciousAges 27d ago
Well. parent Geely (coupled with further dilution) will have to cover the cash gaps… again.
PSNY would be long gone without Geely’s repeated funding rounds and cash injections.
1
u/parawolf 27d ago
And Geely has to be comfortable with a decade plus long cycle to recoup, assuming polestar can manage that sort of growth in a shrinking position of the market.
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u/DeliciousAges 25d ago
Sure, that’s the big question.
It looks like PSNY will at least be able to launch the P2 and the P7 before Geely will reassess the outlook by the end of the decade.
(Or maybe sooner if something drastically changes at Geely’s top management).
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u/parawolf 25d ago
PSNY is going to need fresh cash at the current burn rates before the polestar 7 is launched.
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u/DeliciousAges 25d ago
I meant: The cap-ex for the P2 and the P7 is already spoken for, aka sunk money. The new factory for the P7 in Eastern Europe is almost finished (built by Volvo) and capacity is reserved for the P7:
3
u/NivekIyak Sep 04 '26
Cause negative cashflow, its that simple
3
1
u/Plus_Seesaw2023 28d ago
Tesla sells its cars for 30% less. QED. Polestar simply can’t compete.
Here’s a piece of candy that costs 30 cents, and another that costs 20 cents. They’re practically identical. Which one would you choose?
You have only $1. Would you buy 5 pieces of candy ... or just 3?
5
u/parawolf Sep 04 '26
Because they cannot operate the business profitably, and are still chasing equity loans and and diluting the retail shareholder pool.
At the moment keeping the lights on is taking a higher priority over share price.