• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Polestar (PSNY) Is Down 20.4% After Reverse Split To Preserve Nasdaq Listing Has The Bull Case Changed?

    Simply Wall St·12/14/2025 06:22:03
    語音播報
    • Earlier in December 2025, Polestar Automotive Holding UK PLC completed a 1-for-30 reverse stock split effective 9 December, consolidating its share count as part of a wider capital structure overhaul following a temporary trading halt.
    • This move, aimed at maintaining Nasdaq listing compliance amid ongoing cash burn and balance sheet strain, has sharpened investor focus on Polestar’s funding needs and long-term business resilience.
    • Now we’ll examine how the reverse stock split, tied to Nasdaq compliance concerns, reshapes Polestar’s existing investment narrative and risk profile.

    Find companies with promising cash flow potential yet trading below their fair value.

    Polestar Automotive Holding UK Investment Narrative Recap

    To own Polestar today, you need to believe its revenue growth, expanding model range and partnerships can eventually outweigh heavy losses and a strained balance sheet. The reverse split itself does not change the core short term catalyst, which is securing sufficient funding to support operations, but it does underline the biggest risk right now: liquidity pressure combined with ongoing cash burn.

    The most relevant recent announcement here is Nasdaq’s October notice that Polestar was below the US$1.00 minimum bid price and had 180 days to regain compliance. The reverse split directly addresses that listing requirement, but it does not resolve the underlying issues flagged by the company’s large net losses and auditor’s going concern warning, which remain central to how catalysts like cost reductions and new models might play out.

    Yet beneath the headline of a higher share price after the split, investors should also be aware of the company’s limited cash runway and...

    Read the full narrative on Polestar Automotive Holding UK (it's free!)

    Polestar Automotive Holding UK's narrative projects $11.0 billion revenue and $559.6 million earnings by 2028. This requires 63.1% yearly revenue growth and about a $3.3 billion earnings improvement from $-2.7 billion today.

    Uncover how Polestar Automotive Holding UK's forecasts yield a $30.00 fair value, a 109% upside to its current price.

    Exploring Other Perspectives

    PSNY 1-Year Stock Price Chart
    PSNY 1-Year Stock Price Chart

    Eleven fair value estimates from the Simply Wall St Community span roughly US$1.10 to US$32.13 per share, showing wide differences in opinion. You can weigh those against the immediate funding risk highlighted by the reverse split and consider how that might affect Polestar’s ability to turn projected revenue growth into a more durable business.

    Explore 11 other fair value estimates on Polestar Automotive Holding UK - why the stock might be worth over 2x more than the current price!

    Build Your Own Polestar Automotive Holding UK Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Seeking Other Investments?

    The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.