Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. With the latest financial year loss of US$1.0b and a trailing-twelve-month loss of US$540m, the US$12b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Polestar Automotive Holding UK will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.

See our latest analysis for Polestar Automotive Holding UK

Polestar Automotive Holding UK is bordering on breakeven, according to the 3 American Auto analysts. They expect the company to post a final loss in 2024, before turning a profit of US$288m in 2025. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 31% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Polestar Automotive Holding UK's growth isn't the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Polestar Automotive Holding UK is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Polestar Automotive Holding UK which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Polestar Automotive Holding UK, take a look at Polestar Automotive Holding UK's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Historical Track Record: What has Polestar Automotive Holding UK's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Polestar Automotive Holding UK's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.