Desperate Moves by Polestar Inspired by Faraday Future Strategies | Carscoops

      The automaker that has turned into a penny stock is initiating a reverse stock split to maintain its Nasdaq listing.

      Polestar plans to execute a 1:30 reverse stock split later this year, which would help them meet Nasdaq's minimum price requirement of $1.00. The company's stock fell 15.8% today, closing at $0.53.

      On Halloween, Polestar investors were caught off guard when the struggling automaker announced that their stock faced delisting risks from the Nasdaq. At that time, the stock closed at $0.84, significantly below the $1.00 threshold.

      As of today, the situation has worsened, with Polestar's stock dropping to $0.53, marking a nearly 37% decline in a few weeks.

      There was a significant drop of 15.8% today, likely related to their compliance recovery plan, which includes the 1:30 reverse stock split, expected to raise the PSNY price to $15.90 per share at current levels.

      This move appears desperate, as reverse stock splits are often associated with dubious EV startups like Mullen, Faraday Future, and Lordstown.

      These are not associations Polestar, a major automaker, would want, and it’s a disappointing situation. Nonetheless, the company aims to implement the reverse stock split before the close of 2025.

      The decision follows Polestar's recent announcement of third-quarter results, in which they tried to convey positive aspects. Notable achievements included a 36.5% growth in retail sales, with 44,482 units sold in the first nine months of the year. Revenues surged 48.8% to $2.17 billion, driven by increased sales, carbon credit sales, and a higher proportion of premium vehicles.

      However, the company also reported a significant net loss of $1.56 billion, a steep increase from an $867 million loss during the same period in 2024. Additionally, they are facing challenges from tariffs and indicated pricing pressures.

      On a brighter note, Polestar recently unveiled an updated 3 and an all-new 5, and they have begun a teaser campaign for the 7, which is set to launch in 2028. This vehicle will likely be based on the new SPA3 platform and will be a premium compact crossover developed using “technology from Volvo,” built at their new facility in Kosice, Slovakia.