Polestar hit a new all-time low at the start of Friday’s trading session, dropping below its previous record of $0.61 set in August 2024.
After reporting third-quarter earnings on Wednesday — and with its share price slipping below $0.80 — the company announced plans for a reverse stock split.
Polestar confirmed on Friday it will move forward with a 30-to-1 reverse split of its American Depositary Shares (ADS).
The Swedish-headquartered EV maker, backed by China’s Geely Holding Group, stated that the ADS ratio change will be completed before the end of 2025.
According to Polestar, “no new fractional ADSs will be issued in connection with the ADS Ratio Change.”
The ratio change comes about two weeks after Polestar received a formal notice from Nasdaq, as its shares fell below the exchange’s minimum $1 bid price requirement.
Since reaching a yearly high of $1.42 on August 27, the shares of the premium EV brand have lost more than half of their value.
Since its debut in the Nasdaq on June 24, 2022, when the company’s shares closed at $13.36, the stock price has plunged over 95%.
As of press time, the stock is trading 4.5% lower at $0.59.
Q3 Financial Results
In the third quarter, Polestar reported a 36% surge in revenue to $748 million, which was still $102 million below the consensus estimate of $850 million.
Net loss increased sequentially by $42 million to $365 million in the third quarter.
According to the company, “external headwinds continue to impact profitability.”
Polestar said it “continues to make progress towards securing new equity and debt funding,” supported by Geely.
FY Guidance
The company previously withdrew financial guidance for full-year 2025, citing the need to assess the impact of tariffs as well as policy and regulatory changes.
During its third-quarter earnings call on Wednesday, the EV maker said that it aims to introduce next year’s full-year guidance in the next financial report, expected in early 2026.
Cantor Fitzgerald analyst Andres Sheppard reacted to the results, acknowledging a “disappointing financial quarter and pending additional capital needs.”
Leadership Changes
Polestar underwent a major leadership change last year when CEO Thomas Ingenlath was pushed out by majority shareholder Geely Holding Group.
The former Volvo design executive had led Polestar since its launch in 2017. Michael Lohscheller, formerly CEO of Opel and Nikola, took over.
Ingenlath has since returned to Geely, in a senior design advisory role, according to Volvo Cars’ CEO Håkan Samuelsson, who told Automotive News that Ingenlath is reporting directly to Geely founder and chairman Eric Li.
