Is Polestar stock undervalued?

But Polestar has already shipped tens of thousands of vehicles -- and it's outlined ambitious expansion plans for the next few years. Polestar's stock looks deeply undervalued relative to its peers. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

Is Polestar (PSNY) a good EV stock to buy?

EV stocks are popular among investors, and Polestar could be an excellent choice. Polestar ( PSNY -3.84%) stock is among several newcomers in the electric vehicle industry. Consumer demand for EVs is soaring, but that does not mean every company will succeed. *Stock prices used were the afternoon prices of Dec. 15, 2022.

How did Polestar go public?

The electric vehicle maker went public by merging with a special purpose acquisition company (SPAC), and its stock opened at $12.98 on the first day. But today Polestar's stock trades at about $4. Like many other SPAC-backed EV makers, Polestar drove away the bulls by overpromising and underdelivering.

Is Polestar a profitable company?

However, Polestar has a reasonable chance to be profitable in just a few years time and revenues are projected to ramp up nicely in the next two years. Polestar is expected to generate $5.2B in revenues in FY 2023 and $11.3B in FY 2024, implying top line growth rates of 116% and 117%.