Polestar Automotive Holding UK (PSNY) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: N/A
• Average Volume (3M): 6.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2,547
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.17
• Shares Outstanding: 2,279,875,500
• 10 Day Avg. Volume: 10,706,741
• 30 Day Avg. Volume: 6,458,565
• PEG Ratio: -0.02
• Price to Book (P/B): -0.67
• Price to Sales (P/S): 1.09
• P/FCF Ratio: -1.64
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $1.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $0.50 ▼(-41.18% Downside)

Polestar Automotive's overall stock score is primarily impacted by its weak financial performance and concerning valuation metrics. The company's significant financial challenges, including negative equity and high debt levels, are major risks. The technical analysis further indicates a bearish trend, with the stock trading below key moving averages and oversold indicators. While the earnings call highlighted some operational improvements and sales growth, these are overshadowed by the broader financial instability.

Positive Factors

Revenue Growth

Strong revenue growth reflects successful market penetration and increased demand for higher-priced models, indicating robust business expansion.

Operational Improvements

Operational improvements enhance cost efficiency and profitability, strengthening the company's competitive position in the EV market.

European Market Expansion

Expansion in Europe, a major market, boosts sales potential and solidifies Polestar's presence in a key region, supporting long-term growth.

Negative Factors

Negative Gross Margin

A negative gross margin indicates cost management issues and pricing pressures, which could hinder profitability and financial stability.

Challenging U.S. Market

Challenges in the U.S. market limit growth and profitability, affecting Polestar's ability to capitalize on a significant automotive market.

High Debt Levels

High debt levels and negative equity increase financial risk, potentially restricting future investment and operational flexibility.

Polestar Automotive Holding UK Business Overview & Revenue Model

Company Description

Polestar Automotive Holding UK (PSNY) is a high-performance electric vehicle manufacturer focused on sustainable automotive solutions. A subsidiary of Volvo Car Group and Geely, Polestar operates within the electric vehicle sector, designing and producing electric cars that combine performance, luxury, and eco-friendliness. Its core products include the Polestar 1, a high-performance hybrid, and the Polestar 2, a fully electric vehicle that emphasizes advanced technology, design, and sustainability.

How the Company Makes Money

Polestar generates revenue primarily through the sale of its electric vehicles, including both direct sales and leasing options. The company also benefits from additional revenue streams such as software subscriptions, which enhance vehicle functionalities and user experiences. Moreover, partnerships with established automotive and technology companies, including collaborations for battery supply and charging infrastructure, play a significant role in optimizing production costs and expanding market reach. Government incentives for electric vehicle purchases also contribute to sales, while the growing demand for sustainable transportation solutions bolsters Polestar's market position and revenue potential.

Polestar Automotive Holding UK Financial Statement Overview

Summary

Polestar Automotive faces significant financial challenges, with negative gross and net profit margins, negative equity, and persistent negative cash flows. Despite minor improvements in revenue and free cash flow growth, the overall financial health remains weak, with substantial risks due to high leverage and financial instability.

Income Statement

Polestar Automotive's income statement reveals significant challenges. The company has consistently reported negative gross and net profit margins, indicating ongoing losses. Although there is a slight revenue growth in the TTM period, the margins remain deeply negative, reflecting operational inefficiencies and high costs relative to revenue. The EBIT and EBITDA margins are also negative, suggesting difficulties in managing operating expenses.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative due to negative equity, highlighting high leverage and financial risk. Return on equity is positive in the TTM period but is misleading due to negative equity. The equity ratio is also negative, underscoring financial instability.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flows, though there is a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is above 1, suggesting that free cash flow exceeds net income, but this is due to both metrics being negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.55B	2.03B	2.38B	2.44B	1.34B	610.25M
Gross Profit	-828.47M	-876.17M	-413.08M	119.44M	11.06M	56.52M
EBITDA	-417.20M	-1.67B	-826.89M	-229.51M	-716.10M	-226.89M
Net Income	-2.27B	-2.05B	-1.19B	-479.02M	-1.01B	-484.86M
Balance Sheet
Total Assets	3.64B	4.05B	4.12B	3.94B	3.31B	2.55B
Cash, Cash Equivalents and Short-Term Investments	718.63M	739.24M	768.93M	973.88M	757.93M	316.42M
Total Debt	5.65B	5.01B	3.58B	1.44B	825.41M	436.52M
Total Liabilities	7.91B	7.38B	5.38B	4.08B	3.19B	1.97B
Stockholders Equity	-4.27B	-3.33B	-1.26B	-133.34M	122.50M	580.71M
Cash Flow
Free Cash Flow	-1.47B	-1.35B	-2.03B	-1.80B	-441.83M	-300.76M
Operating Cash Flow	-1.32B	-991.21M	-1.89B	-1.09B	-312.16M	-57.05M
Investing Cash Flow	-379.15M	-412.56M	-417.62M	-715.97M	-129.67M	-243.71M
Financing Cash Flow	1.67B	1.42B	2.10B	2.09B	909.57M	359.64M

Polestar Automotive Holding UK Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNY, the sentiment is Negative. The current price of 0.85 is above the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.85, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 28.39 is Positive, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSNY.

Polestar Automotive Holding UK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	65 Neutral	$18.49B	17.15	11.91%	―	7.49%	-21.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIVN	53 Neutral	$18.05B	―	-65.28%	―	28.21%	44.43%
XPEV	50 Neutral	$20.98B	―	-9.01%	―	86.57%	51.35%
NIO	45 Neutral	$12.53B	―	-329.46%	―	9.60%	-5.91%
LCID	43 Neutral	$4.04B	―	-61.12%	―	45.86%	22.13%
PSNY	38 Underperform	$1.28B	―	―	―	―	―

Polestar Automotive Holding UK Corporate Events

Polestar Reports Strong Revenue Growth Amid Challenges

Polestar Automotive Holding UK Plc, a Swedish electric performance car manufacturer, focuses on innovative design and sustainability in the automotive industry, with a presence in 28 global markets. In its latest earnings report, Polestar announced a 49% increase in revenue for the first nine months of 2025, driven by higher sales volumes and a diverse model lineup, despite facing external profitability challenges. Key financial metrics revealed a revenue of USD 2,171 million, a net loss of USD 1,558 million, and a cash balance of USD 995 million, with significant contributions from carbon credit sales. The company also reported a 36.5% increase in retail sales, highlighting strong performance in Europe and the introduction of higher-priced models. Looking ahead, Polestar remains focused on expanding its market presence and enhancing operational efficiency, while navigating a competitive market environment.

Polestar ADR Earnings Call: Growth Amid Challenges

Polestar’s recent earnings call painted a picture of a company experiencing both significant achievements and notable challenges. While the call highlighted strong revenue and sales volume growth, operational improvements, and a successful expansion in Europe, these positives were tempered by a negative gross margin due to an impairment expense, difficulties in the U.S. market, and the absence of updated financial guidance. This mixed bag of results suggests a balanced outlook for Polestar, with both promising achievements and notable challenges ahead.

Polestar Reports Strong Revenue Growth Amid Challenges

Polestar Automotive Holding UK Plc, a Swedish electric performance car brand, is known for its focus on innovative design and sustainability within the automotive industry. The company has recently reported a significant revenue growth of 56% in the first half of 2025, driven by a 51% increase in retail sales volumes and expansion of its retail network. Despite this growth, the company faced profitability challenges due to external headwinds, resulting in a net loss of USD 1,193 million, primarily attributed to a substantial impairment expense. Polestar’s strategic efforts included raising USD 200 million in new equity and confirming a future production site in Europe for the Polestar 7, planned for launch in 2028. Looking ahead, Polestar remains focused on expanding its market presence and achieving a compound annual retail sales volume growth target of 30-35% from 2025 to 2027.