Why Polestar stock is up today

Polestar Automotive (PSNY 12.15%) appears to be gaining momentum as electric vehicle (EV) shipments accelerated in the second quarter, and management expects even stronger sales as the year progresses.

That momentum boosts shares of the electric vehicle maker, which is majority-owned by Geely Holding and Volvo. As of 1 p.m. ET Friday, Polestar shares were up 12.2%. That followed Thursday’s 13 percent rise as investors absorbed its earnings report and news of a new CEO.

Electric vehicle production in the US for the first time

Effective October 1, Michael Lohscheller, who previously served as CEO of traditional car brand Opel and EV start-ups VinFast Auto and Nicholaswill take over as CEO of Polestar. This appointment comes as the company begins to rapidly increase production volume. Its vehicle deliveries in the second quarter rose 82% from the first quarter to 13,150 units.

Polestar also recently produced its first vehicle in the U.S. on a production line in South Carolina at a plant the electric vehicle maker shares with Volvo. The US facility will also supply machines to the European market.

But it’s the second-quarter update that has investors driving stocks higher. The company says it has seen “particularly strong momentum in the US, Sweden, Norway and Germany”. Polestar also said it sees sales gaining strength in the second half of 2024 and accelerating in the fourth quarter as interest in its two premium SUV offerings increases.

The company ended the second quarter with approximately $670 million in cash and book equivalents. Investors seem to think that will be enough to see it through as sales growth picks up.