According to an article from Electric-vehicles.com, Polestar has announced a reverse stock split at a time when its share price is hovering near historic lows. The move is intended to maintain its listing on the Nasdaq Stock Market, but it also highlights the growing financial pressure on the company as it navigates losses and market competition.
Polestar’s Financial Situation
Polestar reported a net loss of approximately US $365 million in the third quarter of 2025, up from US $323 million a year earlier. The reverse stock split will reduce the number of outstanding shares while increasing the price per share, ensuring compliance with Nasdaq’s minimum bid-price requirements. Shares trading below US $1 had put the company at risk of delisting, making this move a necessary step to maintain investor confidence.
Implications for Investors and the EV Market
While the split addresses listing requirements, it does not solve underlying challenges such as high production costs, increasing competition, and weaker resale values. Investors should be aware that Polestar still faces significant hurdles in achieving sustainable profitability. For the broader EV market, the situation underscores the reality that even well-funded EV companies can face substantial operational and financial challenges.
What It Means for European Buyers
With the Polestar’s European sales dwindling, financial instability may impact consumer confidence. Prospective buyers might consider the long-term reliability of the brand, potential resale values, and the company’s ability to support after-sales services. European EV enthusiasts are likely to keep a close eye on how Polestar addresses these financial pressures while continuing to expand its product lineup.
FAQ
What is a reverse stock split and why is Polestar doing it?
A reverse stock split reduces the number of shares while increasing the price per share. Polestar is executing it to meet Nasdaq’s minimum share price requirement and avoid delisting.
Is Polestar’s business in trouble?
Polestar faces financial pressure with widening losses, high production costs, and competitive challenges, but the company is still operational and expanding its EV lineup.
Does this affect Polestar EV owners in Europe?
Current owners are not affected directly, but future buyers may consider the financial health of the company when evaluating resale value, service, and support.
What should investors watch for next?
Investors should monitor quarterly financial results, production scaling, cost control, and the company’s ability to remain competitive in the EV market.
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