Shares of Polestar (PSNY), the Swedish electric vehicle producer that is a key contender to American EV maker Tesla (TSLA), plunged over 12% on Friday morning after the company announced a 1-for-30 reverse stock split.
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The split means that 30 units of every shareholder’s existing shares will be consolidated into a single share, boosting the stock price per share while keeping the underlying value of investors’ holdings the same. The announcement relates to the American Depositary Shares of Polestar listed on Nasdaq (NDAQ), and the split is expected to be applied before the year runs out.
The decision came after Nasdaq last month informed the EV maker that its listing on its exchange was falling short of mandatory listing requirements. The exchange operator gave the automobile manufacturer until April 29, 2026, to regain compliance.
The reverse stock split means that Polestar will be able to artificially lift its share price while avoiding being delisted from the exchange. The planned move comes as the company is facing financial strain and feeling the heat of competitive pressure.
Polestar Battles Multiple Headwinds
Polestar’s net loss deepened by 13% year-over-year to $365 million during its recent third-quarter 2025 results. This is even though the company, which is backed by Chinese automaker Geely (GELYF), expanded its revenue by 36% from a year ago to $748 million.
Polestar’s growing losses reflect ongoing challenges on several fronts: the automaker is grappling with U.S. tariffs, postponements of new model launches, and fierce rivalry within the electric vehicle sector—especially as Chinese competitors increase their industry presence. Additionally, Polestar is contending with mounting debt concerns.
Is PSNY Stock a Buy?
The sentiment towards Polestar’s shares remains negative on Wall Street, with analysts sticking to their Moderate Sell consensus rating. This is based on two Holds and one Sell issued by analysts over the last three months.
Nonetheless, the average PSNY price target of $1 implies nearly an 84% upswing potential from the current stock price.
