PSNY

Stock Performance: Polestar's shares dropped over 12% following the announcement of a 1-for-30 reverse stock split aimed at boosting its stock price and avoiding delisting from Nasdaq due to non-compliance with listing requirements.

Financial Struggles: The company reported a 13% increase in net loss year-over-year, totaling $365 million, despite a 36% revenue growth to $748 million, highlighting ongoing challenges such as U.S. tariffs and increased competition in the EV market.

Analyst Sentiment: Wall Street analysts maintain a negative outlook on Polestar, with a Moderate Sell consensus rating, although the average price target suggests a potential upside of 84% from the current stock price.

Competitive Landscape: Polestar faces significant pressure from both domestic and international competitors, particularly from Chinese EV manufacturers, while also dealing with delays in new model launches and rising debt concerns.

Q3 Financial Performance: Polestar reported a Q3 adjusted EBITDA loss of $259 million, compared to a loss of $176 million in the same period last year.

CEO's Statement: CEO Michael Lohscheller highlighted progress in commercial transformation, including expanding the dealer network and opening retail locations, which contributed to a 49% revenue growth in the first nine months of 2025.

Retail Sales Growth: The company achieved retail sales of 14,192 cars in Q3, marking a 13% increase.

Market Challenges: Despite the growth, Polestar acknowledges ongoing challenging market conditions and is focused on improving organizational efficiency.

Polestar's Financial Struggles: Polestar's shares fell over 9% after reporting a widened net loss of $365 million for Q3 2025, despite a 36% revenue increase to $748 million, which was below Wall Street's expectations.

Reverse Stock Split Plan: To avoid delisting from Nasdaq due to its share price falling below $1, Polestar plans to implement a reverse stock split, which will consolidate shares but not change their overall value.

Market Challenges: The company faces significant challenges, including U.S. tariffs, delays in model releases, and competition from Chinese electric vehicle manufacturers, alongside ongoing debt issues.

Analyst Ratings and Future Potential: Polestar currently holds a Moderate Sell consensus rating from analysts, but the average price target of $1 indicates a potential growth of over 25% from its current trading level.