what's up guys and welcome back to the channel I have another poster update for
you after what has been a very strange week (nasdaq:psny)
the stock has dipped and then recovered a bit today
and I get the feeling that there may be a case of buy the rumor and sell the
news going on we have seen that a lot with SPAC
mergers over the years the stock runs up and then dips but then runs again
but there are other things going on here too #PSNY
so in this video I will look at the very latest developments and I will address
some of the nonsense reasons for some of the sell-off I will look at the
financial position and compare this with rival companies to show you
how Polestar can make the most out of having the least
and I will compare Polestar to rivals such as neo lucid and rivien in terms of
revenue profitability and overall valuation #PSNY
i also take a look at the very latest from neo with the price prediction for
neo in the coming weeks this video has taken a lot of time to
prepare today after a full day at work this has taken my entire evening
so if you appreciate the effort show your support for the channel by hitting
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drop a comment if there's any stocks you would like me to talk about in the
coming weeks and remember to follow me on twitter to stay up to date now let's
get into it (nasdaq:psny) so Polestar ceo thomas ingelat
has just announced that he wants to put the o2 electric roadster into production
saying that the o2 would be a great way of putting Polestar on the map as a
high-end manufacturer
but first the question that has been troubling me all week with regards to
pulse their stock is at what point do we hit bottom
after initially rising up to over 13 after the company's ipo the stock has
dropped this week in very poor market conditions
the nasdaq has generally had a very bad week with the ev sector hit particularly
bad tesla stock being down about 10 percent
with lucid neo and rivien also being down roughly about 10 percent
but Polestar was down over 30 percent dropping as low as 850 on friday morning
before eventually gaining late in the day
finishing the day at 9 53 to record a gain of 8.17
on the day now this is the same thing that happened just a few days before the
merger #PSNY where the stock also dropped to 850
before going on a run of before going on a run to over 13
so far this price of 850 has proved to be the lowest point of support for
post-air stock and at this price it gives a valuation
which is quite hard to believe at 850 this would make Polestar
worth just over 17 billion dollars which is insanely low
considering that in the ev world right now (nasdaq:psny)
the only company producing better results and selling more evs outside of
china than Polestar is actually tesla when it comes to major companies looking
to go green and expand their fleet of electric vehicles the first company
at the top of any list is obviously tesla the second is Polestar
but we already know this we have already seen this when we seen
the recent contracts being signed between the care rental firm hertz who
signed the biggest ev contract in history with tesla last november and
this was closely followed by the second biggest contract in history that was
signed between hertz and Polestar earlier this year #PSNY
with delivery of these vehicles having already begun in q2 of this year compare
this then with some of the hype stocks that we see in the market today such as
mullen automotive who have talked about major contracts
with with major fortune 500 companies but
nothing materializes out of this holster is a real company with real
facilities they have designed and manufactured and sold real vehicles and
are operating on a global scale across more than 30 countries
again showing one other company that is operating on such a global scale
the only one is tesla a company that is currently valued at around 700 billion
dollars compared with Polestar which is valued at less than 20.
in fact allstar is valued at less than rival companies that have less sales
less market penetration across less markets
companies that have not delivered and do not forecast to deliver anywhere near as
many vehicles as Polestar so let's discuss what the hell is going
on to have investors so unconvinced by the company's credentials
first things first too many people are calling this company a chinese company
and they're comparing this with the likes of Nio (NASDAQ:NIO) XPENG (NASDAQ:XPEV) Li Auto
or BYD Co (nasdaq:psny) and the reasons for this are very simple
number one ulster currently produces its vehicles in china and this is largely
because ulster's main shareholders is the volvo group who despite being a
swedish company is actually owned by gili automotive which is a chinese
company. #PSNY So first of all just to be clear, Polestar
is a swedish company that is headquartered in gothenburg
sweden not china their production is currently taking
place in china but from 2023 onwards for pole stairs upcoming vehicles a
sizable portion of their production will take place in the us in charlestown
south carolina so this is not a chinese company it is
listed on a u.s exchange and will be producing vehicles in the u.s
just because Polestar's major shareholder
is a chinese company does not mean that Polestar is a chinese
company after all I mentioned bidco a moment ago
bitco is a chinese company but one of its largest shareholders is warren
buffett's berkshire hathaway we do not consider bid to be an american
company just because of warren buffett nor do we consider tesla to be a chinese
company when they actually produce some of their vehicles in china and the same
can be said about volkswagen or mercedes or a whole host of other automotive
companies that all have production facilities in china
secondly and this cannot be stated strongly enough when we compare Polestar
to other rival companies in the ev industry
there are some things that we do not know for sure about Polestar until we
get (nasdaq:psny) their first public financial statements
like for instance how much cash does the company actually have and will they need
to dilute shareholders in the near future before they become profitable
what we do know from the investors presentation and the redemption rate at
merger is that polestar will have approximately 850 million dollars added
to the company's balance sheet as a result of the recent merger
this is on top of the 293 million that the company says
they had at the end of 2021 so Polestar actually has over 1.1 billion of cash
but is this enough everybody always likes to compare ev
companies by their sales and by their revenues but when we look at the cash
positions we see the likes of rivian who have over
16 billion dollars of cash or lucid
who have over 5.3 billion tesla have 17 billion and so on so polls
there really do not have a lot of cash
and have less than most of the rivals one billion dollars is really not a lot
of money for a startup ev company that has just gone public in fact to put this
into perspective if i've seen rivien or lucid have only one billion dollars in
cash right now I would be saying that these companies are about to go
bankrupt. Is Polestar going to go bankrupt?
once again this is a sign of just how far ahead of its rivals the Polestar
really is when we look at lucid for example we can
see they are making losses in excess of 500 million dollars in just one quarter
britian who actually have more cash than tesla are making losses of over 1.5
billion per quarter but on the other hand Polestar is
projecting a loss for full year 2022 of just 900 million
and a loss for 2023 of just 200 million before turning profitable in 2024.
now these projections are based upon polls they're selling 50 000 vehicles
this year but recent projections are estimating
that they could sell up to 70 000 vehicles in 2022
which would reduce this loss and would therefore mean the Polestar have easily
enough cash without needing to delude shareholders
at any point now I spoke about these projections in
one of my previous videos over the past couple of weeks
and these figures are based upon deliveries (nasdaq:psny)
that have already been achieved so far this year
being put at an annualized rate which in my opinion is very achievable
and this is something that I have said many times over the past six months
ulster's sales guidance and projections always seems to be on the low side so i
think that the company is being very prudent they are acknowledging that
there is supply chain issues across the globe this year and the low projections
make it very possible for them to exceed expectations
overall I think the Polestar has an extremely bright future but on another
note something else that I just want to
mention in this video just a quick update on Nio which is my
pick of the chinese ev companies again i've made plenty of videos about neo
over the past year on this channel but the stock has crashed again this week
being down over 12 percent with a recent short report being issued
by grizzly research who have criticized Nio sales and deliveries saying that the
company is likely using a related party to inflate its revenue and
profitability but in the past few days this short report has been completely
dismantled by jp morgan analyst
nick lau (nasdaq:psny) and in the past 24 hours morgan stanley
released new notes on Nio saying the share price will rise in absolute terms
over the next two weeks predicting a rebound in the second half of this year
let me know in the comments below if you would like me to talk more about
neostock this weekend and give you my opinion of where this is going
i will be making another video on polestar where I will properly compare
all stare with the rival ev companies in more detail
i know that last weekend I said I would be making a video comparing these
companies I just felt it was important to make this video separately today
and first to address why I feel the stock price has dropped after rising up
to thirteen dollars but if this is something that you want
to see then drop a comment below and smash the like button show your support
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