Polestar Automotive Holding UK (PSNY) 16 Jan 252024 Q3 Earnings call transcript

Company Profile

Participants

Michael Lohscheller	executive
Kristian Elvefors	executive
Mona Abbasi	executive
Philipp Romers	executive
Theo Kjellberg	executive
Jean-Francois Mady	executive
Andres Sheppard-Slinger	analyst
Trevor Young	analyst
John Babcock	analyst
Daniel Roeska	analyst
Tobias Beith	analyst

Call transcript

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Stephanie Johansen

Polestar's strategy update highlights key changes the company is implementing and important news about the business and future products. Based on a well-positioned brand and exciting products, Polestar is entering the next chapter on its journey to accelerate the change towards a sustainable electric future by making the performance cars of tomorrow. My name is Stephanie Johansen. I'm a freelance interviewer and moderator and spent some time with Polestar to get a better understanding of the company's plans going forward, identifying the changes, challenges and opportunities that lie ahead.

Stephanie Johansen

So, Michael, what was it about this role that convinced you to join?

Michael Lohscheller

I admire what the Polestar brand stands for, pure progressive performance. love Polestar I course, of the cars. exciting And X the beginning. experienced myself at Polestar the I right And working Polestar emission. is on the without future this, of I happy performance, combined exciting, And I'm and think, to team. the is part be with

Stephanie Johansen

And for job? why person the do you're right think you the

Michael Lohscheller

young CFO that worked the for in Polestar bit -- with and right I of have various mobility has legacy think in CEO OEM roles. also the I have to XX enthusiasm I the And I'm also years. And in this companies of automotive future. this and little done also industry I but companies. I'm convinced products. a bring experience course,

this this on excited approach, based totally think also about the that. I guiding, fact-based chapter, company new I'm but So, into experience, leading the

Stephanie Johansen

Michael, a bit if It's kind you guess that also situation. The getting EVs talk now, Protectionism is expected. about the transition a storm fiercer increasing, maybe than could right in is plus we day. fierce. perfect little the competition to we're longer taking So, maybe situation what I was of by it call now, is

how of adapt to do plan kind you market? that So, to at Polestar

Michael Lohscheller

the walk different addressed. let's you through Well, topics

be and on that is And make that ourselves. in true we it there manufacture growing. so First EVs, regions and attention. BEV market. still the I we No, of but regionally offers is of world is for and the We to significant that, regions also are for It the sure remind lot Is to different true duty a depend EV situation in there yes, sudden growth the X more think years of don't it is important something all, as the more as is hoping obviously, strong market were world, ago? in we the changes. to need all pay protected that's

have more obviously, is have the the means focusing it us, important we cost-competitive choices. pricing becomes means product. they key to customers competitive. why But and more And is we also a things, And of there platform that's job for market a do have because more come much that's efficiency it what forward, that strategy is for do the costs we good, So, And pressure. going have on and to down. highest that making exactly to because have increase better real sure

Stephanie Johansen

describe if So, talk now, overall about we how you financial the performance? numbers would your

Michael Lohscheller

cars, much for retail of we lot now and I up Why car, we a a was terms of Polestar X XXXX changes on side, distribution also year all, much with improving X, from so efficiency made year positioned more efficiency. pressure the we more cost. much this the a competitive, together increasing the cost transitional where Polestar. feel reducing XXXX, pricing XXXX market, and on better now bringing right gets the distribution, reduction with are into there, Polestar. and to transition the significant We obviously, and really All transition partners, made significant which Polestar do I focus in is very of salespeople. going well in also that? launching and initiated But much, X. efficiency, right sales X First points for more And say ramping a and

Stephanie Johansen

funding credits play support? will of what COX in role think terms you do and And revenue

Michael Lohscheller

this politicians by the the Polestar things. really future and right to the of important. why And this our value, topic into invest value this products. plays the mobility, sell And very defined in that's these And we markets COX of want like also that credits role zero-emission into of COX we gain the important monetize have is the now It in obviously, is company, being doing We a is various because world. therefore, credits. and our order future a to

We obviously focus of And continue a to because has which it's our expect digit all in EV a company, part of sure X- the amounts have result cars. work that on coming benefit. this selling business that we XXXX I Polestar financial to we terms want the is million of for also to make good done

Stephanie Johansen

all now, to this think, So, both years, taking and you where into the does it growth, put that expected comes profitability coming in volume? you account on when

Michael Lohscheller

obviously is important. Volume

we of targets, expect have. young this between 'XX now time. compound company, this in period annual that a established this a sales markets improved growth approximately. have growth performance 'XX obviously right? We in through And market, lineup volume and between are and we various we we believe the And but and achieve a XX% clear the we rate strong And can which is in the product the XX%

So, also one: terms that's the growth, volume first defined, clearly clearly milestones. defined of in

And we for this adjusted improve cash financial positive free target 'XX. a of target investments. performance, EBITDA, by terms flow we XXXX, then In in year after which will a XXXX, positive

obviously milestones, then on clearly circumstances, to we obviously So, the have quarterly basis. a right-sizing into and taking sure defined which account very execute that's the market business, we markets making different the back but report

clearly-defined we very about also the done milestone, taking the plan, because, So, first, by feel our Polestar good it's plan changes. into business this business people, consideration

Stephanie Johansen

kind to about kind going talk change? important things that of change, to sales you that? your are meet what will how And are approach we the of say would If most change

Michael Lohscheller

that's call active brand. active exciting and selling of showing done company one service, in and only a lot retail is customers well-positioned the changes Polestar setting happy mean? to job are salespeople through well products. that has from qualified foundation making has change, so improving. is the now, locations, that really But of the It's more Whereas informed also to the task does baseline, strong brand, customers, sure now it the I the key good What with with partners starting but a a with are up and very sales closer selling. the direct-to-consumer key need its to the company. side. More that the things a very distribution car the the not

Kristian Elvefors

full Europe, off. U.S. non-genuine wholesale can that the was which that to in agency Australia Korea now with and from Stretching Two the U.K. which are really the transition model, you orders are meaning and examples grand of taking already rest Sweden, selling, and we and that see with actively now Switzerland of change. is and early

strive into business a for those model constantly that in to of new XX from more more we X we in are [ see have will in Sweden, also footprint we like business retail spaces can they sales go staff in training is come. partners And and are model going to that and We model. the transitioned months. the active new XX the ] we like all selling, in almost U.K., are XX the them coming to are and salespeople And from this months we X And the well. commission-based do take as where to in same growing. the markets And on XX markets in also

So overall, we are increasing.

journey build purchase and a journey. our customer inside will We the a more allow are That test visit still sales us, be the actually with as to online taking to full to to investors of and also drive future. do journey our footprint the care for can the to they our customers and a competent part us, from able do customer with online, a more and teams wants if Or salesperson full teams. support experienced do to

So, it's is a where we but up were. the to customer, it from big difference

Stephanie Johansen

Europe both the South last France. in Why? new and announced company focus expansions, now, But year, market So, the I understand is on America.

Michael Lohscheller

biggest with France the it is forward, markets. suited enter therefore, want now going all retail to have And will believer, very all about this and therefore, big markets all a with of in well of one the BEV lines, processes. XXXX we, Polestar, Eastern capture management, and very we we potential, the car the world. understand French XXXX we and because French do our of And France. now. which partners, the are also about very it's course, is XXXX European for France execution well. in Europe want Central we competent And Then, I'm introduction onwards, course, And existing in to

America and we execute also make well. we and And about France. [Presentation] go and Latin step let's is implement Asia. very But We sure step go all XXXX Southeast by to will

Stephanie Johansen

So, so it's Mona, why tell me important? and up about community that the you built Polestar

Mona Abbasi

actually In the our interact this we Yes. we've few members more built entire them about with offline. -- community And up of years, and owners, Polestar it last X/X XX,XXX to which is than XX,XXX of to and on we've park. car grown both date, passionate

so on. the it's connect innovation other, really our for matter, to the to and performance, For questions and ask talk an each owners, to car's all them things that with about opportunity

for For also informs we're we a of customer-centric. us, lot us, always it's it that so hugely it ensure do, the that important we decision-making -- and very that because generates we insights

Stephanie Johansen

that's community. And that you I them also in as the person well. with online meet know

Mona Abbasi

every correct. events Yes, We that's year. do

world, So, at from our experts. that events we they behind-the-scenes track HQ. the do do where also official events then, over customers all meet driving And join we here

to a think phenomenal but very is I feel they've I Polestar special driving before. they're then, have think that experience, very of lot different we family unique. Obviously, very them to that a anything are been saying

Stephanie Johansen

that loyal their you're -- are you to How very close track your customers. they? -- And I What know I'm retention, sure customer is.

Mona Abbasi

Yes.

lineup X customers of properly the the see X, now retail another, cars, super think can we a we to that previously. [Presentation] XX% excited I with growing first and it's one do Polestar have a that from the model Polestar to drove that of actually time that

Stephanie Johansen

look the that what if lineup, we in differentiates the it So, you then Polestar do at model think market? is

Michael Lohscheller

all, portfolio Polestar has exciting Well, first now. an of

brand. is X, the XXX,XXX sold Polestar the we of has So, the which X. Polestar have Polestar basis than more really And

X, real like, For SUV, car, now, sports that big is SUV with achievement. coupe real, the company, very X. a added, a And the design Polestar and a Polestar a in Polestar a young 'XX, has sporty

terms but this the very I is to the in change So, we strong. [Presentation] think think brand have also And performance, terms demonstrates of a And and stands I is that's what in things brand in of but excitement. yes, very will basis. the company, the for product amazing. several portfolio basis important It

Stephanie Johansen

in What's lineup? the next

Michael Lohscheller

Polestar X now I about well? Can as talk

Stephanie Johansen

Sure.

Michael Lohscheller

But showed which Polestar stage. about will then is if to so is we exciting. and X, sports and will we now come X, launch manufacture also happy it think an the in the a sports brand at X, a and Polestar. this such Polestar a of and development, is halo Polestar really And which amazing you the Polestar the compact that SUV, super important X, amazing later here Europe. X today, I'm will the so that is Because also that is car, car announce

course, of and fantastic the So, customers, also the all the news fans, all Polestar for brand. future

enter the all DNA. will the in segment, We by comes Polestar and we world. the fastest obviously make biggest segment sure will growing the way, with compact SUV And it the

Stephanie Johansen

that thing Philipp. who its constant from Polestar's brought and future on is traditional focus brings of remain perspective. Welcome, a design. fresh will Romers, The lots with OEMs him Philipp in company in experience One has

So, for it's on first just impressions? a your few job are What you. days the

Philipp Romers

because First model automotive Design very, is in course, here something a of And brand. design-driven all, for is design-driven very privileged of special be of Design be more personally, To Head to a become actually. brand. Polestar here. of Polestar to role a is It's yes, of fantastic of But even me I very such becoming of terms Head special course. feel is,

Stephanie Johansen

it this to of the was how team And for meet responsible design? kind

Philipp Romers

-- because the nothing. They yes, it within This forward Yes. established this already. Polestar. last there cars chapter the really of met team to built was And, fantastic, years, It's I say. create now brand. impressive That's the looking this and have these actually, next all was is really now right. to I team I'm really

Stephanie Johansen

Yes.

that plan Polestar? honoring you DNA about design but at ideas, on how new perspectives. talked brand, You do this So, injecting kind well-established new also then, of

Philipp Romers

And the chapter, as stands born for a more performance. there the value I I out soon. topic stress X, impressed to of for of pure teaser, lot. of Polestar is the a sought this racing looking strong a and forward from express Polestars really more as room it in Polestar deeply Race actually, is the me. see we X is even is I'm and I Actually, are express think really also progressive how of F.A.T. yes, kind to pretty doing, Ice me drove really until will set, I to be clear really it. But really or the the would I And this this drove. this I and this a all even and really design, for and prototype like was you an a performance. they of topic behind all we go thing will team. the together is early the quite and and to inspiration already one coming next performance,

Stephanie Johansen

this So, Philipp, bit and going you it. I the us will project a mentioned Polestar be forward. for a know about that. X, Michael Tell little your big team

Philipp Romers

Yes.

be work very forward about And this sure really progressiveness, within team SUV, the a X And performance-oriented. will a has USP. have Polestar expect, USP. to very, of this a strong the I progressive of will we with probably compact next talk course, you will project every As the looking make when Polestar kind And that also month. on very I'm

Stephanie Johansen

will that special what we can And of a get feature hint be?

Philipp Romers

yet. Not

still on are it. We

Stephanie Johansen

Thanks everything. see. wait and so good Okay. and We'll luck with have much, to

Philipp Romers

Thank Stephanie. Thank you, you. [Presentation]

Stephanie Johansen

a be you for partnering maybe view, with a production X? platform us and the will point of From up Polestar who tell

Michael Lohscheller

Yes.

is cover. in in North we about manufacturing market. America, say, we very duties, the important for first talk Let's Polestar chosen the Charleston, produce because of a tensions, In intelligent manufacturing an I American North and that times strategy geopolitical that has topic should would

in Korea. We also produce

in in say I But more have produce Polestar locally technology, but China, come. it's to X we be of very for manufacture fair and And produced partners Europe. markets. will local also intelligent We in a strategy, the manufacturing to think terms

has our the and some see, -- various is also terms platforms, intention past all, my a it In obviously platforms. And is future, on Polestar this integrated of but different is have all in platform, That harmonize cars strategy, strategy platform, disadvantages. which important of consistent platform we benefits, now had has first in only we and has the that over one platform. real put time to

Stephanie Johansen

Great.

Okay.

in Polestar. about sustainability continue? DNA. the that's also talked lineup, has of But that X. really a your we kind for from Will earlier day that model been So and current differentiator It's

Michael Lohscheller

Absolutely. U.K. And emissions, the this. important awarded the we COX because that that And sustainable our day, in doing day. right milestones. important day. we X reductions. we sustainability Polestar Polestar they don't get the has it. X And it of value materials. [Presentation] milestones. And important has really things. we is recycled want at And we and And appreciate EV important, so have The want significant to want of Polestar Polestar sustainability, car doing using seen sure so And for is achieved most we things every is feel that been the do the better to it is and every course, better it's the to for those are and we customers continue And And make have end right the customer. on big

Stephanie Johansen

streams connected What your revenue other about to offers?

Michael Lohscheller

Yes.

a is are during topic you time, or where offer for get then the the We charging our there, Polestar customers. example, important of Basically, What side does business. we a Another during that night, the And Energy. day the smart costs beneficial energy to for call customers. our charging mean? it at

achieve So, European customers then we cost from and in reimbursement a it I utility other say, can this, markets. a companies. out is also saving. win-win And for We really All can and Netherlands actually to U.K., everybody. we roll now big started the this would get

customer another very way, becomes because it's that important in customers appreciate hey, this technology business. and much this, also like pillar So, And Polestar they Energy new I'm discussions, it's our I and know also see hopeful that. they right, like from a beneficial then, of really

Stephanie Johansen

this been you've X Michael, months then, finally job. on about So,

what of Polestar? in success you then, the future makes so Looking confident ahead

Michael Lohscheller

reasons. Well, I'm optimistic several for

cost focused Polestar the the on are very efficiency. additional the business. sales of talent. we has We now of exciting great all, key of a things the fantastic significant brand, of has increase and tackle business: products. First important topics reductions, Polestar distribution,

about day, execution. have management We plan. it's our great formed all a of at the end the It's team. And

I the year Polestar. be history We are best am highly will execute, in that of the motivated to and convinced XXXX

Stephanie Johansen

insights Thank you today, all so for much your Michael.

Michael Lohscheller

Thank you, Stephanie. [Presentation]

Theo Kjellberg

Theo of you Jonas and Jean-Francois Communication. and our me My Head everyone, today, us. CFO, Lohscheller; our afternoon, And CEO, Engstrom; is COO, Corporate Good Mady. have joining I name Michael Kjellberg, for thank with our

I laws performance remind will targets, medium-term comments not future be macroeconomic are federal and company, are company and considered other has trends, today like but subject to on, forward-looking near-term include, U.S. statements that moving the production forward-looking Before and would funding our financial uncertainties Polestar's and statements under of materially outlook regarding the statements to delivery participants requirements, operating many and risks industry fundraising initiatives cause to financial These communicated. securities to, may numerous what been and volumes, actual results that from and and of results, events. differ limited

undertakes only forward-looking and obligation Polestar statements any its today to of Forward-looking update are as of today, made effective no statements.

some For a differ, the contained factors review our cause filings. in could risk actual of of our discussion results the SEC please that to factors

might comments. call. financial financial session, move directly reconciliation In of X-K in additions, GAAP and this most the A non-GAAP can said today. With references and make found during addition, management in our and we Form the Jean-Francois, non-GAAP PR discussion published measures to team use be comparable the measures before the to X recent the a of hand word appendix to most and we the management Michael I'll for why into Q&A some over introductory measures that

Michael Lohscheller

and welcome setup. have Theo. this this time to everybody Good management warm to Lohscheller in I the call important new for here. conference first welcome you Thanks, Michael that afternoon, and possibility

for me. Before also dialogue, things X into evident want highlight and we important I are which this to important very go very

exciting in our video excited am how all, products and of I those have I First also how you am personally exciting about are products. introductory seen our sure

excellent one of we But in an important CFO, the with for dialogue. our And the on people. as team. our this management obviously is talent basis Polestar, COO there first through have we're And important The here going together overall, company. transformation Jean-Francois time and have that and exceptional this as an is is and this that's Jonas second

So again, I warm welcome to my and Jean-Francois. from side, over it hand

Jean-Francois Mady

is I thank stand and I Michael, a colleagues CFO fast-moving for This new new, first Thank I today honor this know What I chapter. the an evening, like vibrant Polestar. sense introduction. Polestar getting everyone. you, organization filled really past It's morning, company, and I my welcome our our has afternoon, you have joining and Good am with key a spent call, and to truly have take excitement to new is of and most remarkable. deeply. seen months would the X opportunity my as dedication talent, good today are to of new the The received. I Polestar and for committed good this impressed in company, warm our the spirit to products am before participate asset, our people. to importantly, me after to innovative the have responsibility.

the focus opportunities my we I we to be will improve strategy. now, control. And future execute our main tremendous look way to As I areas that the see on X can

but value secure one maximizing about our The cash, to to to our improve be also profitability. first will and protect

with I'm efficient organization, the delivering transformation, looking better about relying meet driving of with one and will process second best-in-class our forward soon. to reduction, system. with The starting the procedure, very with only third but and the best And not engage main you into Also, and be efficiency, much will the best you the finance on be control area also process. operation about cost

turn Q&A open the session. I the to operator Now, to

Operator

you. Thank Instructions] [Operator

come our questions the Cantor line to are We from going from now Andres with Fitzgerald. question. of The proceed Sheppard first

Andres Sheppard-Slinger

Can you me okay? hear

Michael Lohscheller

hear can Welcome. we you, Yes, Andres.

Andres Sheppard-Slinger

and the looking on of update presentation. working information going forward. business lot helpful A together to Congratulations forward during the Wonderful. certainly

To Just give realize you to next just as in have through. moment. expect for to might maybe some not about questions few deliveries year if able might how us quick we the start, at wondering what a 'XX? guiding directionally, insight from deliveries you're deliveries get to think to I be XXXX But

Michael Lohscheller

here. Michael Andres, you, Thank

what improved about XX% Obviously, a take question put we was statement have in XX% obviously, are And more started me where signal against this quarter we coming we the that's 'XX, between also into put a forward. release information and in years. the by various right also year the little encouraging we retail And we made that That's in from growth obviously locations continue that an this And ballpark, my happened perspective. to today into fourth the doing the there now next way also and closed also markets. we going XXXX. XXXX An our and there, Let because think to of the important intake quarter for that perspective our bit target clear XX%. a things. want was prior to order

growth So, said, how 'XX, then XX% also think about to what we would and we XX% 'XX is but 'XX.

Andres Sheppard-Slinger

helpful. super I appreciate That's Wonderful. that.

if you wondering your can I'm Secondly, maybe us just capital of remind needs.

had You December. you year? opportunities wondering, But just capital in to you that pursue this external loan still do that expect raising received

Michael Lohscheller

some on volume but the right terms obviously comment Jean-Francois like let on highlight market I'll also to we based business plan And what I new is assumptions, growth. what would think in also this a of of the achievable at is realistic Yes. beginning, details,

product on cost, the highlighted have overall. We call, improvements also cost on significant in

to funding and are it's that's it. like, not task really the the reduce is So, right, our first okay, funding because needs, needs, those

talk we that. Let's how manage

a and highest funding flow maybe positive needs, reduce First to investment, comment the some funding Jean-Francois, for is to importance there also details cash will needs. the reach till of here. us be on after in say you but we fair of XXXX it's And

Jean-Francois Mady

quite with [ I a not have help burn, cash we also plan to a profit, an want of our situation. reduce reduce currently, starting X neither stock, quite Normally, our ownership if cash with even million operating spending. we going of and quite But contribute this reduce model, have are to have burn product But that will funding, Indeed, CapEx us some rich reducing X, And inventory. but on No. to need. very XXX And recently far, terms optimizing cannot Clearly, need We ] on heavy model month. this will Polestar burn in We retailers USD are our those significantly in from direct very to customer to think come need a we This equity entering points. growing XXXX approximate currently, per terms our will for also, reducing launch to USD acceptable had sustainable, aspect. of will by to an more we then, so capital, Polestar XXX but much take of weighting we we to retailer cash business significantly. know shift should Polestar our X. the comment is capital working CapEx million launch of our Polestar need debt that which, first X. we that on the to sell our of some this that our

Andres Sheppard-Slinger

on Wondering for if I Wondering give can one Obviously, you helpful. just very may. tariffs. your if me, maybe done question last your Very, of manufacturing some that. you how perspective being China. is Wonderful. in us And address might

last Carolina. your year, -- in opened you You South facility

You talked in Polestar Europe. producing the about X

be there. wondering just your done impact maybe and tariffs on of view what minimize to try to So, high kind the can

Michael Lohscheller

you. thank Yes,

Let me take this.

really and only want but our are situation, of terms manufacture So, we work have obviously, to cost. through, tariff for locally a optimizing not the to tariffs also and challenge we in

around tariff regionally be, of also have example, setup, make need cars cost-competitive which not the why, lot for only we produce a and ship little bit we where a Polestar locally world That's view. of a produce. you from of super majority a decision are Europe, sure where a to in but and view, times the best decision of the to sales did sense, over, X is the think is a makes from we to point will the cost point I

optimal the then Renault Volvo facility, Now, have very is in we that's have this time duties. in at That the X hand the go have to a South situation the tariff plant in overall I how we about But we prepared. manufacturing South the approach, helpful, we Busan, hand. locally where And Obviously, is because obviously, with also U.S. you the America. there, situation in and Then, we North in try logistic the way, Polestar in in produce terms of for U.S., feel talking element. also with in the Korea same optimize there, the think a cost Carolina, well produce they facility which the factory, setup

Andres Sheppard-Slinger

helpful. context. Very again update. appreciate the I Wonderful. business Congratulations on the all

Michael Lohscheller

Thank you.

Operator

The from of next questions come from Dan the Levy Barclays. line

Trevor Young

This is Young for Dan today. Trevor on

operations? with rule one days, on this around First it's given recent you appreciate and I ask, your expect you wanted associated China explain pretty Geely. here, it's pretty just topical obviously impact to I to early but Can connections the sense is the to the important, U.S. from your or cars how your U.S. connected from China

Michael Lohscheller

for Trevor, here. question. the Michael Thanks, Yes.

Let this. take me

right? all, U.S. is about I facility have in of an talked manufacturing for South the So market first Carolina. So, local important us, we already

We have are now, we already partners the and in dealer up. U.S., XX ramping this

X. Polestar the with progress great have We

is of a market, So, Scandinavian in I terms the U.S. a well is very also brand. think positioned and Polestar very important

now it's the we yesterday various And final And have way, a then before, will as think is And we true the effective and solutions, of the for we that rule the in being elements. will discussions product U.S. yesterday, our I the on we we was on now, in same legislation, it all year had 'XX. start will make in markets from for finalized terms model because which are all operate, the which this in various side compliant Now, all sure markets, for we that and the good be this. work around

now, and we will U.S. And rule. market. find final the for is the because have we the important Now yesterday 'XX, model today U.S. year solution between an the or

creating We American are jobs.

at in listed We U.S. company are the NASDAQ which a is

will So, U.S. solutions importance. at that. is in find about And of for we'll obviously, we announce this, details and stage highest later more a

Trevor Young

seem a Okay. could the transaction. ruling it element, ownership sounds, does way there, the the that create pretty like just with I guess, substantial

for lookout the on So, that. be

CAGR a you follow-up here. by within guidance XX% could flow couple give sense that general you for to the can't I on just a model? volume you your of broad Just to was years, next expectation, specific I of how give XX% curious, get target this in that, strokes. but expect

Michael Lohscheller

obviously, We do and very Polestar Happy successful started obviously, And was continue, well be for at known. I Polestar and but the the that, a will I to this Polestar of to XX%, which now Yes. X, additions. situation X car, Polestar X. intake is with for precise, X order is than important more X, XX% and When of order think, intake total look QX, the Trevor.

this towards increase actually momentum X X more are Polestar think cars. also I and are a ramping those gaining cars just up, bit exceptional as will and

I So, XX% will XX%, Polestar high say and X. plus X level, be would

Trevor Young

And percentage really give step-up selling potential for one I should helpful. in I sales in, spend more strategy? as could active from a was the of you can just OpEx curious if squeeze That's if we more the a us or OpEx sense expect that

Michael Lohscheller

terms the right? make sure. you model, selling active said, OpEx In to for of Just the

Trevor Young

a just the Like active moving Yes, to or... more is approach. change from it material

Michael Lohscheller

point. good No, Yes.

Therefore, top a margin. us. on limits obviously varies processes, we model to efficiency, to question, cost pay it That the and set the model best by direct-to-consumer first terms active But cost-efficient. and this, then certain go solution, retail up the no partners the digital distribution very very, and right? customers of was, the order we country. that's direct-to-consumer all, So Because selling of of in

think from but is cost-effective really give And partners probably a very I now, therefore, a is not when why what high the then And here. hybrid, from traditional reviews substantial. very because a still, it the cost-efficient not setup. is the below as it's percentage I I about the you that's we country have is retail different approach. very, throughput. a if It direct-to-consumer agent our and you it But It's idea substantial. significantly obviously, not substantial. that It dealer differs, competition know So, distribution, have get

Operator

of our are Bank questions of We the proceed next from question. now with line Babcock John going from The to America. come

John Babcock

you're new thinking of about adding on terms contacts here, How quickly coming talk on that's Just could perhaps detail retail be growth much just of spaces just guess, adding number in I out in there would there? that you there? versus following the change and how strategy from spaces Polestar spaces dealer about helpful. any of up the

Michael Lohscheller

question. Thank John, that for Yes. you,

around partners. it today, locations. want we everybody think this, even again, cost So, and have is agreements we XXX so increase can about, And to we if is, long about agency the with around to XXX, Obviously, because going this our to the have important were so we closeness talking we way we retail efficiency to to going because ballpark distances. do this year feel is customers then not to better numbers. XXX, Due

but -- from quickly level, So high can. to as XXX as we XXX

John Babcock

view also market. also, And How you Okay. do can on way there? Polestar mention information other out additional Is quickly think factor, to did of And the touch you next, it's any very share you for a just That's in well? information for other terms there that notable product the then, helpful. more did on targeted the form any markets there probably you as X. I this size, as -- going European any be

Michael Lohscheller

Yes.

we a to obviously, things But many of also I through a work highlight. details, stage. and want at So, couple details those announce we'll later

we We overall think one really, And have but it's And come we only profit biggest go of SUVs really the in for finalizing we and the a important segment made, do that. share to of globally. pools which therefore, stage, later in of first later So important terms announcement our this size good. of important following manufacturing us, segment. why John. into will also, because the decision. been right? we Europe at profit details, market I strategy. performance to being not But has see well really, we bigger the forward, It's is But pools in in factories, going cars, exceptionally more at is segment also is but are Europe, also profit think we pools the our all, do is in in SUV also in The to it's clear big. compact technical a those the of details, that Europe reason Europe, the fastest-growing really And the larger as terms that of very then, also process smaller because of big in the segment decision the a sales will are stage this

John Babcock

early I is Okay. it launch about date. assume, talk too to

I calendar think roughly that a frame out well? it as too time that is Or in comes it we've Is been announce assuming 'XX. year makes sense? early to that

Michael Lohscheller

profit well. big later sooner, work that the pool. part details those all to I this, it's want I of sooner, as The then, better a announce at pool. this with because better. be as and through Well, The will said, profit But a let's we look, other stage relatively the big easy. it's

John Babcock

Okay. Fair question just my pass I enough. And before it last over. then,

levers about about 'XX? get getting 'XX. positive positive Could there? then, talk in did you key in And to talk expect you that to Just, and the do 'XX stay also, EBITDA EBITDA you you

Michael Lohscheller

Yes. start. I'll Maybe

volume is So growth helps. right? So, obviously, the this, volume more supporting

I terms mix think is think is product in Polestar the of margin about P&L the to way element. the improvement big a

like So, when situation, has the early X, more significant we also cost Polestar progress. impact our this talked make X, Jean-Francois as Then, where Polestar on good mentioned, we P&L. more on

'XX, level, high cost So, do reductions, to product growth, the want you margin improvement, and talk key Jean-Francois, on 'XX? especially drivers. And that's about mix revenue

Jean-Francois Mady

the of main to Just maybe we'll in X on complement cost buckets. reduction, terms so focus

of the related So reduction, material. and cost working we be partners reduce our suppliers the product the one would to cost with to bill going where manufacturing of start first to and actively costs are the manufacturing

program and until regarding dynamic like CapEx Polestar selling administrative I to would going as general and on efficiencies point, from R&D, and are look spending. some started well And the to we focus expenses. this XXXX On our XXXX. We right-sizing will mention at that quite lastly, for

reduced And looking consider You that's significant XX% course, headcount we more this of of by And during that period for XXXX have time. continue carry-forward enter nearly benefit. of working we'll allow to have a actively with efficiencies. to us our to going

So, moving forward. positive for this XXXX quite is

the a in of also reach the well to we leveraging the XXXX, flow EBITDA according as to break-even but cash improvement So, in guidance. adjusted our reduction an XXXX, targeting are top in line, order the cost mix,

Operator

come going Daniel from questions of with from the now our are Roeska line The proceed next question. We Bernstein. to

Daniel Roeska

best from the into, and strategically, imply that a you of of platform Could moving ahead. to to journey you about manufacturing kind for there preceding bit Michael I Michael, Specifically, outlined platform the harmonized said now, point the more detail big announcements success going little built and manufacturing made some partners. that just of call, welcome and your could earlier? Polestar does of factories And one some time? contract was by we away us and you you're start go of vision always with what be Jean-Francois, the going owned and Polestar you Q&A? would on talking you're a manufacturing strategies give contract of kind platform. kind in at you could and And of

Michael Lohscheller

Daniel, for Absolutely. Thanks, question. the

So, all, the asset-light very approach, rightly important, very which highlighted, first Polestar you is of quite will continue beneficial.

will not own So have we factories.

benefits a make We partners for and and also has I and sense is asset-light which a Polestar helpful. company will of use super that doesn't as lot brand. a think approach, as our financially It continue

continue platform. will is, platform talking about But approach, we asset-light with over harmonize strategy, we think time, said. this to our the the Now, way as about the

this model sure, call the we braking, And will here, SUV time, we industry, us for over car, but architectures long So, obviously, and well, tuning, cost and cars all chassis, that for current then, these architecture when put be this no over as will architectures. and make over steering, group the we let's compact Polestar, harmonize will integrated. will the will time. over more call take different will time. And all Polestar time, efficiencies the on that But will platform, we this situation future platforms like we then with continue, as have things and this above DNA the harmonize give story factories have we we it short, a will platform asset-light where know

Daniel Roeska

Great. dive a to bit profitability. I'd deeper into like

big profits. programs? gross I upside? a the of give break-even also see some a the gross fixed of of terms get you not number, cost have, the some us going kind You for already do it where you to you in And kind some give What's to kind aggression? contrast models? right? fit still levers. get that on Is can Or the and kind the opportunities just you're cost-out example, of margins but driving of of assessment X different between with to qualitative mentioned maybe the where more you sure to current X X, upside, Polestar I'm X could kind pretty me of But

Jean-Francois Mady

gross Polestar profit say, to we pool terms Daniel, Polestar Polestar clearly, will of our X. So, on be give and I by profitability, in want will on X profitability. that don't Polestar But followed X up margin X,

cost Our plan on X. attack clearly product to including is the Polestar reduction,

discount also on of We car, have already in market can competitive but a see to quite mind well high part Polestar the protect EV order and the X from face to we to to some Polestar as margin in reengineer where our X this improve the of profitability competitors.

product ] say, reducing one. clearly, quite [ fast, the So, products of of especially product. in been Those work protect the path will to order we on have to I will cost margin, this our have our recent developed

of to terms leverage to some in attack here have gain we So, order quite in profitability.

Daniel Roeska

question, two, look, Great. one, XX and quickly, maybe, And of and covenants? And if can get a what's time, could the that's Jean-Francois, to Number targets. to maybe I control. beyond last really your Jean-Francois, say, really, financial and independently you, kind one, lot months' comment can happening market the change, happen in Michael

in uncertain items XX you if in me we this say, we environment. meet is you time, what months' So, by you if where this could give measure should X

covenants, just the comment things a what we then, have maybe you and So one, meet XX again, would on accomplishing? the in if are months, short confidence really

Jean-Francois Mady

our dialogue mention partners, engaging in constructive the partner will order of regarding the that partners. the ratio. our to end and forward new our active waiver financial relationship we free the At revenue, course, lending positive sale, we I main the have revenue, our will that considering have of always of year, with and performance a the in covenant our say and we and covenants. I we lenders. Then, will the those would flow. with on far, a retail and moving the have to course, our so moving And with on first continue amended which got growth debt-to-asset amend of will profit covenant, say of path, gross margin So, cash you we the adjusted But are the of forward, be, our to growth assess the KPI EBITDA,

on the which with we measures will are forward. you So, those communicate moving

Michael Lohscheller

a we our things exactly so those control. also I And very it's done control. completely if that add are assumptions. And how have values. obviously is on Costs we we say, have. in said, many are because assumptions. COX control also credits know our what our in we have sell Jean-Francois but not credits at in realistic our can few we control, to are may realistic The planning really pricing important very I clear is based market Obviously, would in

control. So, most are our the of things in

us absolutely. measure we on in you XX meet months' highlighted, if Jean-Francois things say, would I So time, the can

Operator

now We Redburn to Tobias proceed come from from Atlantic. of question. are going next with line the Beith The our questions

Tobias Beith

The an now from business free includes okay. be its flow whether target underlying million on to sale please, in self-funding basis operating the flow of Are right? which cash the able separately, questions, at if X of own re-casted cash you regulatory I'll will ask have credits. vehicle $XXX least I confirm that's

Michael Lohscheller

see So, those separate. I

to measure So, business automotive to on we margins, first that. generation we business, done. don't link of credit. things what really I is don't sure that all, and I the The an have COX is want do that But many and the of it. credit money, of making make car many, we need also have including COX comes top initiated important to

are we there separate those for work But reason separate. So, they value because big it's will is why prominently COX But increase. streams credits, are significant will X it us. highlighted obviously very and amounts, as the amounts, grow so the

with the separate So, increase making EBITDA credits And making and positive value. is sure in the money the and XXXX will steps. automotive, business car first COX is a are

Tobias Beith

or consolidation charges any anticipated platform your longer be assets higher volume were contract to and from for from trigger Will Understood. Okay. with used partners? that impairments manufacturing

Michael Lohscheller

also Polestar all And cars happen time, architecture And harmonization right? the group or platform. really then, over the will go X on new Platform starting architecture. will this is

that So, use stop mean don't cars or that it. earlier doesn't basically we

So, not long-cycle the we consequences think, decisions business impacts. have. this but automotive we today financial long-term architectures trigger optimize ones. all know, a business, the therefore, as this of But negative will is everything any we And harmonization I and important, have is of existing

Tobias Beith

a that's XXXX. share then, All then, something how helpful. full the comment the potentially perhaps could and nameplate, was into finished And XX% of by wondering finally, split I if That the right. is on year the over it evolves fourth volumes you retail from in quarter year of you higher where

Michael Lohscheller

Yes.

as directionally, I So, in said, down. Polestar X, percentage, terms of is coming

to in doesn't to forward. just X above also And and the X let's business the to that But and And precise. about but significant. X growth is successfully these markets. all Polestar will way intake Polestar that's of order for X the launch cars going XX%, X XX% we mean, was are stop, Polestar the the So, beginning be say, think

why that's XX% XX% more said to So, on, plus. early I it's

Tobias Beith

the number a XXXX Okay. volumes and quarter? But fourth X put on you're Polestar to today X willing not for

Michael Lohscheller

at stage in that do when March. out we No, a later we report

Theo Kjellberg

planning is to for Thank our of you voted before question was file Technologies was you bankruptcy? And Operator, why to one you the registered And one up answer wrap platform. will from shareholders questions not we earnings? the most retail for are now very highly much. call. A Michael, are take that reporting the quarterly we Say this via you,

Michael Lohscheller

Yes.

start the the earnings. quarterly question with on let's So,

XX then, that highlights. update, will financial that commercial publish We is have have the today. what announced moving And and key the done exactly on we first October forward, we

it a because bit done we have business updated this focusing We on were later plan.

reporting. but quarter and third the financial the the and first out, highlight full financial we of year have the half for forward, extended for will the going report year, key So, numbers, year, also then, them every

will fourth year then and again. March So, X. this a will And full regular example, come XXXX also for the rhythm financial quarter to the on be reported

our and presented the also improvements. financial in those that's next to to reporting of think on think I plan, And have again. a question answering a course, new are by And we So, come implement I today, business step of step. Good. we path we regular updated terms good

last the was this So question.

regards see all the obviously, joining first Have for a So, to for appreciate dialogue. the then, this. It forward Jonas, to person to wonderful Gothenburg. to looking Polestar. do this for and new pleasure and want thank a dialogue. business an real continued day. We from the Hope was soon in myself plan Best you important I Jean-Francois you for time;

Operator

Thank today's participating. all concludes for This call. conference you

now may you. disconnect your You lines. Thank

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