Polestar received a formal notice from Nasdaq on Friday, warning that its shares have fallen below the exchange’s minimum $1 bid price requirement, adding another crisis to the struggling electric vehicle maker’s mounting problems.
The Chinese premium brand has 180 days — until April 29, 2026 — to regain compliance by maintaining a closing bid price of at least $1 for ten consecutive business days, according to a company statement.
If unsuccessful, Polestar may receive an additional 180-day extension to meet the requirement or face delisting from the exchange.
Polestar shares closed at $0.8449 on Friday, down 2.95%, hovering dangerously close to the stock’s 52-week low of $0.8210.
The delisting warning comes as the stock trades near multi-year lows, down 10.13% over the past month alone.
SPAC Dream Fading Out
The compliance notice marks a stunning reversal of fortune for a company that went public via SPAC merger in June 2022 with a valuation approaching $20 billion.
Shares have since plummeted more than 94% from their all-time high of approximately $16.41, erasing virtually all shareholder value in less than three years.
Friday’s trading volume of 74.5 million shares — nearly 20 times the three-month average of 3.91 million — suggests potential capitulation selling.
The stock has declined over 40% since its late-August peak of $1.42, and is down 26% over the past year.
With a market capitalization now languishing at just $1.81 billion, Polestar trades at a fraction of its initial valuation, reflecting brutal market skepticism about its survival prospects.
Retreat on All Fronts
The delisting threat comes amid a broader unraveling of Polestar’s business strategy.
The company shuttered its final retail store in China earlier this month, completing its withdrawal from the world’s largest EV market after cycling through six regional leaders in six years.
Earlier this week, Polestar closed its two UK research and development sites in Nuneaton and Coventry, laying off 130 staff as it centralizes operations at its Swedish headquarters.
The company told Business Insider it no longer requires the UK R&D capacity now that engineering work for the Polestar 5, its upcoming flagship model, is complete.
Leadership Turmoil
The Gothenburg-based brand underwent a dramatic leadership change last year when founder Thomas Ingenlath, a former Volvo design executive who had led Polestar since its 2017 founding, was pushed out by majority shareholder Geely Holding Group.
Michael Lohscheller, formerly CEO of Opel and Nikola, took over as the company struggled with production bottlenecks, weak demand, and mounting losses.
In its most recent quarterly results, Polestar posted a staggering $1.03 billion loss in the second quarter.
Product Strategy in Question
Despite the turmoil, Polestar unveiled its latest model, the Polestar 5 sedan, at last month’s Munich IAA auto show.
However, the catastrophic stock decline reflects investor doubt that new products can reverse Polestar‘s fortunes in an increasingly brutal EV market where even established players like Tesla face margin pressure and demand concerns.
Path Forward Uncertain
Polestar has several options to regain Nasdaq compliance, including a reverse stock split that would mechanically lift the share price above $1.
The delisting warning has no immediate impact on trading, and shares will continue to be listed on Nasdaq under the ticker PSNY, subject to continued compliance with other listing requirements.
