Polestar is the Swedish-branded electric vehicle maker backed by Geely Holding and part of the broader Chinese-European EV ecosystem. It has launched models in Europe and the US, such as the Polestar 2 and Polestar 4, and positioned itself as a premium EV challenger to brands like Tesla and the European legacy automakers. Despite those ambitions, the company’s stock has recently fallen into “near all-time low” territory, raising serious questions about its path forward.
What’s Happening With the Stock and Financials
Over the past year Polestar’s share price has fallen significantly, with recent reports showing the stock hit a 52-week low of US $0.82 (≈€0.76) and the company warned investors of a “going concern” risk. The firm reported disappointing margins: in one quarter its gross profit margin was negative 97.2 %, a dramatic decline compared with prior years.
Now, additional pressure has arrived: Polestar has received a formal notice from the Nasdaq Stock Market for failing to comply with its minimum bid price requirement of US $1.00 per share. The company has until 29 April 2026 to restore the share price to at least US $1.00 for ten consecutive business days, or face potential delisting (though a further 180‑day grace period is possible). This notice underscores how closely financial health and regulatory compliance are now intertwined for EV start‑ups.
Why This Matters in the Broader EV Landscape
Polestar’s performance serves as a reminder that even well-backed EV startups face tough realities: scaling production, maintaining quality, managing costs, and meeting market expectations are all harder than they appear. For European consumers and industry watchers, the dip in Polestar’s fortunes may signal caution for EV brands that promise rapid expansion without a clear path to margin improvement.
What This Means for Europe
Polestar remains active in Europe, with operations, sales, and brand positioning across markets such as Germany, the UK and the Nordic countries. But its financial troubles could affect service, residual values, and long-term viability. European buyers may increasingly factor in brand stability, warranty backing and resale expectations when choosing EVs.
FAQ
Why has Polestar’s stock crashed?
The crash reflects weak margins, warnings about going concern status, increased competition, slow uptake of new models, and investor concerns about Polestar’s ability to scale profitably.
What does “going concern” mean for Polestar?
In this context it means Polestar has reported sufficient doubt about its ability to continue operations without restructuring or additional financing, which alarms investors and analysts.
Is Polestar only exposed in Europe?
No—but Europe is a key region. Polestar also operates in North America and China. Its financial issues may impact its global operations, service and brand credibility.
Should potential EV buyers in Europe worry?
It’s not a direct operational risk for current owners, but brand stability and resale value may be impacted. Prospective buyers should check warranty coverage, local support and market-specific conditions.
Can the company recover?
Recovery is possible if Polestar can reduce costs, ramp up sales of higher-margin models, improve vehicle economics and execute on its strategy. But the path is challenging and uncertain.
Featured Image Credit: Polestar
