Recently, Polestar Motors (NASDAQ: PSNY) disclosed through its official website that due to failure to submit its annual report for the fiscal year ended December 31, 2023 in a timely manner, Polestar has received a notice from the NASDAQ Stock Exchange in New York stating that it does not comply with the relevant listing rules of NASDAQ, which require the company to submit all necessary periodic financial reports to the US Securities and Exchange Commission in a timely manner.
Polestar stated that the notice has no direct impact on the listing of the company's securities, and these securities will continue to be traded on NASDAQ, provided that the company continues to comply with other listing requirements. According to the listing rules of NASDAQ, the company has 60 days from the date of notification to submit a compliance plan to NASDAQ. If Nasdaq accepts the plan, the company may receive an additional period of up to 180 days from the due date of the annual financial report, or until November 11, 2024, to restore compliance.
In addition, Polestar also stated that the company has obtained the consent of lenders under a three-year financing limit of $950 million, exempting them from the responsibility of delaying the submission of the company's annual report, and will make every effort to restore compliance and meet all listing requirements of the New York Nasdaq Stock Exchange.
"Polestar is working hard to submit its annual report as soon as possible and will release its preliminary unaudited financial and operational results for the first quarter of 2024 thereafter," Polestar said.
In response to the latest progress made by Polestar in responding to the aforementioned Nasdaq notice, a reporter from the Daily Economic News inquired with Polestar, but as of the time of publication, no response has been received.
"Polar Star has a buffer period for submitting its annual report, and as long as it is submitted on time, there should not be too many problems." Cao He, President of Quanlian Vehicle Investment Management (Beijing) Co., Ltd., analyzed to reporters that taking the high-end new energy vehicle route requires time, especially the accumulation of brand names. Polar Star needs to further streamline various relationships in its subsequent development.
Public information shows that as a luxury electric vehicle brand jointly developed by Geely and Volvo, Polestar rang the opening bell on June 28, 2022, New York time, on the NASDAQ Stock Exchange. Prior to this, Polestar began trading under the stock code "PSNY" on June 24, 2022. This listing is through a business merger transaction with Gores Guggenheim, a special purpose acquisition company (SPAC) in the United States.
Public data shows that in the first quarter of this year, the global delivery volume of Polestar Motors was 7200 vehicles, a 40% decrease from the same period last year; In 2023, Polar Star Motors delivered 54600 vehicles worldwide, falling short of the expected sales of 60000 vehicles.
For the Chinese market, Polestar Motors rarely releases sales data. According to public data, in 2023, the sales volume of Jixing Motors in China was approximately 1100 units. Since the delivery of the first model in 2020, Jixing Motors has sold approximately 5000 units in the Chinese market. However, in the first four months of this year, the cumulative sales of Jixing Motors in China were less than 1000 units.
Shen Ziyu, Chairman and CEO of Polestar Technology, once said in an interview with reporters, "Winning the Chinese market is the key to becoming a leader in the global new energy vehicle field. The balance between design and technology is the key to Polestar's success in the Chinese market. Currently, Polestar needs to rebuild brand confidence in the Chinese market as soon as possible and let everyone know about our brand."
It is reported that 2023 is regarded as the "first year of China" by Jixing, and Jixing Technology, a joint venture established by Xingji Meizu Group and Jixing Motors, fully takes over Jixing's business in the Chinese market. According to Shen Ziyu's prediction, in the future, the sales of globalized Polestar in the Chinese market will account for more than 30% or even 40%.
As a result, Polestar is constantly increasing its presence in the Chinese market. In January of this year, the headquarters project of Jixing Technology in China settled in Jiangning Development Zone, Nanjing. The project integrates research and development center, operation center, procurement center, sales center, and delivery center, and is planned to be put into use in the second quarter of this year. At present, Polestar has established four major manufacturing bases in China, namely Taizhou, Ningbo, Chengdu, and Chongqing, producing Polestar 2, Polestar 4, Polestar 3, and Polestar 5, respectively. According to the plan, in addition to being put into production in Chengdu, the Polar Star 3 will begin production at a factory located in South Carolina, USA this summer.
"This year is a breakthrough year for Polestar Motors. Polestar will utilize the resources of Geely's big platform to strengthen its layout in the Chinese market in terms of vehicle products and online channels," Shen Ziyu publicly stated in a media interview.