Polestar shares fell further on Thursday, extending the 17% drop from the prior session after the electric-vehicle maker reported a wider quarterly net loss while reaffirming its annual sales growth guidance through 2027.
The stock closed 17.3% lower on Wednesday and slipped another 6% in early trading to $1.02, nearing Nasdaq’s $1.00 threshold which forces publicly listed companies to trade that mark to avoid being delisted.
The sell-off came after Deutsche Bank analyst Edison Yu cut his price target on the stock by a third to $1.00 from $1.50, while maintaining a Hold rating.
The firm initiated coverage of Polestar three years ago with a Hold rating and a $10 target, but since then the stock has lost 88% of its value, shrinking the company’s market capitalization from nearly $19 billion to about $2.4 billion.
In its second-quarter report, Polestar said it ended the period with $719 million in cash, little changed from $732 million in the prior quarter.
The company in June announced a $200 million equity investment from existing shareholder PSD Investment Limited, controlled by Geely Holding Group founder and chairman Eric Li, through the sale of about 190.5 million Class A American Depositary Shares at $1.05 each.
Polestar also said it had secured around $1 billion in new 12-month term loan facilities and renewed about $1.1 billion of existing ones, while adding it is working with Geely to obtain further financing, which could include new equity or debt.
Cantor Fitzgerald analyst Andres Sheppard said in a note Thursday he “continues to expect Polestar to be materially impacted by tariffs and geopolitics in the near term (since the company is primarily producing its vehicles in China), though the U.S. currently comprises <10% of total sales.”
The firm kept a Neutral rating while lifting its 2025 delivery estimate to 64,221 vehicles from 58,721.
Polestar began trading on Nasdaq under the ticker “PSNY” in June 2022 following its merger with Gores Guggenheim.
Earlier this week, the company announced a partnership with Australian Olympic champion swimmer Kyle Chalmers.
