Polestar Automotive Holding UK PLC Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Babcock - BofA Global Research - Analyst : Hey, good morning and thanks for taking my questions. I guess first of all, you didn't really touch on this too much, but could you talk about the impact of the tariffs that the US is considering and ultimately how you're adjusting the impact on demand, recognizing it maybe early, but any color you could provide on that would be useful.

Question: John Babcock - BofA Global Research - Analyst : So at this juncture, does it make sense to revisit the supplier base to and or and or maybe find localized suppliers in the US market to compete there, or does it perhaps make more sense to adjust like the sales footprint and focus more on other markets like say Europe or or other areas of Asia, etc.

Question: John Babcock - BofA Global Research - Analyst : Gotcha, thank you. And the next question, you did talk about the new commercial strategy and particularly using dealers if you could just talk a bit more about how that transition is going, how far along are you, where you expect to get to by the end of the year.

Question: John Babcock - BofA Global Research - Analyst : Good thank you and and then just last question I know you talked a fair bit also about driving efficiency through the business. I was wondering if you might provide maybe some examples of where you see opportunities to improve efficiency and especially as you, go through 25, what are the areas you're going to focus on there?

Question: Daniel Roeska - Bernstein - Analyst : Good morning, good afternoon. Thanks for taking my questions. Congratulations on the breakeven on gross profit in Q1. I wonder if we may dive a little bit deeper because it looks that the vehicle mix while pricing was a little bit better year on year, kind of Q1 24 to 25 seems roughly stable, so I'm wondering what prompted or what were the key drivers for the reduction in the COGS per vehicle. Could you maybe split out if there was a mixed component to that decrease in the COGS per car and how much of that was battery cost relief? If I kind of backtrack the numbers you published, I kind of get to a number of about 51,000 COGS per car in Q124. And then 46 in now 25. Just any color, kind of what that progression was and maybe Xterra. What your targets for this year would have been, kind of how do you see that cog per car going forward?

Question: Daniel Roeska - Bernstein - Analyst : Very clear. I'll press you on one thing on the terrace though to ask what is the share of non-UFMCA parts in your South Carolina production. So if we think about the the Postar 3 manufactured in South Carolina, kind of what's the share of non-US MCA parts in that car?

Question: Daniel Roeska - Bernstein - Analyst : Would it be fair to compare you to other OEMs have said like there's kind of a fairly low share kind of 10% or less, and the developed materials that are sourced from elsewhere and then there's of course the battery. I'm just wondering that with your connection and the platform also connected to Geely, whether there is a higher Chinese content in the Postar 3 made in South Carolina than in other cars in the US.

Question: Tobias Beith - Redburn - Analyst : Great. Good afternoon both. I hope you're well. My first question is this, how explicit are contract manufacturing volumes in your multi-year contracts with Volvo and Geely? And does Postar have any protection against both of these companies reallocating capacity to their own models, which is a more profitable activity for them.

Question: Tobias Beith - Redburn - Analyst : Sure, okay, but is it fair to assume that I guess there is a world where Volvo says, hey, actually, I would prefer to use the capacity in South Carolina to produce more potar 3s or sorry EX 90s or ES 90s, and therefore limit Postar 3's volumes in that country.

Question: Tobias Beith - Redburn - Analyst : Sure. All right, thank you. How do you as a as a management team plan to to navigate Polestar through the next few years, in a world where Polestar's equity value is unfortunately temporarily impaired due to changes in global trade and a mismatched contract manufacturing footprint.

Question: Tobias Beith - Redburn - Analyst : All right, great. And then just to hopefully a a quick final last one from me. If you feel comfortable, may you share the amount of income that we generated from the sale of regulatory credits in the first quarter.

Question: Tobias Beith - Redburn - Analyst : Right. Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Hi everyone, good morning, good afternoon and thank you for taking our questions. I just wanted to maybe follow up again on manufacturing in South Carolina. I think I recall in the past the production capacity here is about 150,000 I believe Polestar's production mix will be roughly about 13, and so, are we to understand that the. That is meant to kind of fulfill the demand in the US and that the priority will now be shifting more towards Europe and other markets or, is that how the potentially you expect to mitigate the tariff impact by maybe shifting strategies to European and other markets rather than the US and the production there is roughly only about 50,000. Just any color there would be helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 12:00PM, PSNY.OQ - Q1 2025 Polestar Automotive Holding UK PLC Earnings Call Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Got it. Okay, that's super helpful. I appreciate that. And maybe just as a quick follow up, can you just walk us through your liquidity position again? So with 732 million, maybe can you remind us, what kind of cash burn you expect and and how are you thinking about additional capital needs. Thank you.

Question: Dan Levy - Barclays - Analyst : Hi, thank you, good afternoon to you. Wanted to first start with a question on model mix. If you could just run us through again, what the mix of pulsar 3 and 4 is and how much more you can push the mix towards 3 and 4 to, at least improve the profitability and be emphasized too. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 12:00PM, PSNY.OQ - Q1 2025 Polestar Automotive Holding UK PLC Earnings Call

Question: Dan Levy - Barclays - Analyst : Great, thank you. And I know it's a ways out, and I think this is something that was addressed on the last call, but, the US ban on trying to connected cars starting model year 2027. I know there's a way to go, but have there been any developments on your end on ways to work around this?