Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 323

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 323
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 period.

Management’s value in use analysis is based on the 2025-2029 business plan. We identified the impairment of the Polestar 3 and Internal Development projects CGUs as a critical audit matter because of the significant estimates and assumptions management made in the value in use calculation related to future pricing, sales volumes and manufacturing costs. Auditing the significant estimate and assumptions required a high degree of auditor judgement and increased audit effort, including the need to involve our valuation specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the impairment of tangible and definite-lived intangible assets included, but were not limited to:

• We assessed the key assumptions used in calculating VIU including future pricing, volumes and manufacturing costs by:

◦Comparing the Company’s forecasted vehicles sales volumes to industry analyst reports,

◦ Comparing the assumptions used in the forecasts to the Company’s historical trends in forecasted sales volume, pricing per car and manufacturing costs,

◦ Comparing forecasted pricing, sales volumes, and manufacturing costs assumptions to preliminary recorded results from subsequent periods.

• With the assistance of our valuation specialists, we tested the underlying source information and the mathematical accuracy of the calculations.

• We evaluated the Company’s sensitivity analysis by comparing to our own sensitivity analysis to corroborate the disclosures around assumptions that are most sensitive to a reasonably possible change that could cause the carrying amount to exceed its recoverable amount for a cash generating unit.

/s/ Deloitte AB

Gothenburg, Sweden

May 9, 2025

We have served as the Company's auditor since 2021.

F-4

T able of Contents

Polestar Automotive Holding UK PLC

Consolidated Statement of Loss and Comprehensive Loss

(in thousands of U. S. dollars except per share data and unless otherwise stated)

  Consolidated Statement of Loss and Comprehensive Loss                                             For the year ended December 31,                                      
                                                                                          Note                                 2024              2023              2022  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue                                                                                    4                            2,034,261         2,368,085         2,440,818  
  Cost of sales                                                                              6                         ( 2,910,428)      ( 2,778,222)      ( 2,339,696)  
  Gross (loss) profit                                                                                                    ( 876,167)        ( 410,