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Polestar Automotive Holding UK PLC Sponsored ADR Class C
(NASDAQ:PSNYW)
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Rating:44Neutral
Price Target:
$2.50
▼(-10.39% Downside)
Action:Reiterated
Date:07/21/26
The score is primarily held down by very weak financial performance: deeply negative margins, large ongoing losses, significant cash burn, and a highly stressed balance sheet with negative equity and rising debt. Technicals are moderately supportive in the near term (price above 20/50/100DMA with positive MACD), but the longer-term trend remains pressured (below 200DMA). Valuation is not supportive given negative earnings and no dividend yield provided.
Positive Factors
Revenue scale & growth
Sustained top-line expansion to $3.1B in 2025 provides a broader revenue base to absorb fixed costs and support future operating leverage. Durable volume growth improves the company's ability to invest in product development and distribution, underpinning longer-term margin recovery if cost structure tightens.
Negative Factors
Deep losses & cash burn
Persistently large operating and net losses combined with negative operating and free cash flow indicate the business is structurally cash consuming. Continued burn necessitates external funding, constrains reinvestment capacity and increases risk if product ramps or margin improvements are delayed over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scale & growth
Sustained top-line expansion to $3.1B in 2025 provides a broader revenue base to absorb fixed costs and support future operating leverage. Durable volume growth improves the company's ability to invest in product development and distribution, underpinning longer-term margin recovery if cost structure tightens.
Read all positive factors
Polestar Automotive Holding UK PLC Sponsored ADR Class C (PSNYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)―
Beta (1Y)-1.01
Revenue Growth50.33%
EPS GrowthN/A
CountryUS
Employees1,686
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-26.96
Shares Outstanding683,332
10 Day Avg. Volume4,844,664
30 Day Avg. Volume1,871,395
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)-0.39
Price to Sales (P/S)0.65
P/FCF Ratio-1.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Polestar Automotive Holding UK PLC Sponsored ADR Class C Business Overview & Revenue Model
Company Description
Polestar Automotive Holding UK PLC, established in 2017, is headquartered in Gothenburg, Sweden, and specializes in the creation and distribution of high-end electric automobiles....
How the Company Makes Money
Polestar primarily makes money by selling vehicles to customers (retail sales) and, where applicable, through fleet and commercial sales, with revenue recognized from the delivery of cars and related vehicle components. In addition to vehicle sale...
Polestar Automotive Holding UK PLC Sponsored ADR Class C Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: operational and strategic positives (volume growth, record Q1 volumes, strong European performance, retail expansion, cost reduction measures, regionalization of manufacturing, and an improved product mix driven by Polestar 4) are offset by near-term financial pressures (negative gross margins, widened net loss and EBITDA loss, tariff impacts, pricing pressure, and quarter-specific lower carbon credit revenue). Management highlighted structural improvements and actions to improve profitability and cash flow, but significant margin and loss headwinds in the quarter temper near-term outlook.Positive Updates
Record Q1 Volumes and Geographic Strength
Retail sales grew 7% year-on-year to over 13,100 cars (a record first quarter for Polestar). Europe volumes grew 11% and now represent 78% of total sales. Notable country-level growth: U.K. +20%, Germany +35%, Sweden +17%. Strong growth also reported in South Korea and Australia.
Negative Updates
Negative Gross Margins
Reported gross margin was negative 3.2% and adjusted gross margin negative 3.3% for Q1 2026, driven by pricing pressure, EU and U.S. tariffs, lower carbon credit revenue in the quarter, and a less favorable car-line mix.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Volumes and Geographic Strength
Retail sales grew 7% year-on-year to over 13,100 cars (a record first quarter for Polestar). Europe volumes grew 11% and now represent 78% of total sales. Notable country-level growth: U.K. +20%, Germany +35%, Sweden +17%. Strong growth also reported in South Korea and Australia.
Read all positive updates
Company Guidance
Polestar reiterated a cautious but actionable near‑term plan: management said Q1 volumes rose 7% to >13,100 cars (Europe 78% of sales; UK +20%, Germany +35%, Sweden +17%) and that its full‑year volumes remain aligned with the low‑double‑digit growth guidance given in February, driven by an expanded retail footprint (target ~250 sales points by end‑2026, up from ~150 a year ago; Germany to grow from 12 to 30 points by 2027) and new product launches (Polestar 4 SUV after the summer/late‑year, Polestar 2 successor early next year). Financially, they expect 2026 carbon‑credit revenues to be in line with 2025 (>USD 210m) despite Q1 carbon‑credit sales of USD 21m, reported cash was ~USD 676m at March 31 with average 2025 cash burn ~USD 120m, the company remains in covenant compliance and expects debt‑to‑equity conversions of ~USD 300m (Geely Sweden) and ~USD 65m (Volvo Cars) later this quarter. Operational levers to reach profitability and cash improvement include consolidating Polestar 3 production to one South Carolina plant from late‑2026, adding a Polestar 4 variant in Busan, and cutting staff ~25% to ~1,700 to realize cost and efficiency gains.Polestar Automotive Holding UK PLC Sponsored ADR Class C Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
8
Very Negative
Cash Flow
10
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.06B | 2.03B | 2.38B | 2.44B | 1.34B |
| Gross Profit | -1.08B | -876.17M | -413.08M | 119.44M | 11.06M |
| EBITDA | -1.93B | -1.67B | -826.89M | -229.51M | -716.10M |
| Net Income | -2.36B | -2.05B | -1.19B | -479.02M | -1.01B |
Balance Sheet | |||||
| Total Assets | 3.93B | 4.05B | 4.12B | 3.94B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 739.24M | 768.93M | 973.88M | 757.93M |
| Total Debt | 6.49B | 5.01B | 3.58B | 1.44B | 825.41M |
| Total Liabilities | 9.05B | 7.38B | 5.38B | 4.08B | 3.19B |
| Stockholders Equity | -5.12B | -3.33B | -1.26B | -133.34M | 122.50M |
Cash Flow | |||||
| Free Cash Flow | -1.37B | -1.35B | -2.03B | -1.80B | -441.83M |
| Operating Cash Flow | -914.99M | -991.21M | -1.89B | -1.09B | -312.16M |
| Investing Cash Flow | -520.68M | -412.56M | -417.62M | -715.97M | -129.67M |
| Financing Cash Flow | 1.69B | 1.42B | 2.10B | 2.09B | 909.57M |
Polestar Automotive Holding UK PLC Sponsored ADR Class C Technical Analysis
Positive
2.79
Price Trends
2.62
Positive
3.10
Negative
4.00
Negative
Market Momentum
0.02
Negative
54.31
Neutral
84.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNYW, the sentiment is Positive. The current price of 2.79 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.62, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSNYW.
Polestar Automotive Holding UK PLC Sponsored ADR Class C Risk Analysis
Polestar Automotive Holding UK PLC Sponsored ADR Class C disclosed 73 risk factors in its most recent earnings report. Polestar Automotive Holding UK PLC Sponsored ADR Class C reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Polestar Automotive Holding UK PLC Sponsored ADR Class C Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $22.24B | -5.95 | -67.49% | ― | 14.21% | 20.20% | |
49 Neutral | $11.09B | -33.37 | -7.56% | ― | 49.73% | 54.60% | |
49 Neutral | $2.45B | -0.45 | -440.92% | ― | 66.54% | -22.69% | |
47 Neutral | $11.09B | -7.64 | -328.93% | ― | 51.42% | 66.12% | |
46 Neutral | $12.41B | -45.90 | -2.49% | ― | -23.38% | -123.25% | |
44 Neutral | $2.08B | -0.63 | 45.67% | ― | 50.33% | ― |
* Consumer Cyclical Sector Average
PSNYW
Polestar Automotive Holding UK PLC Sponsored ADR Class C
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Polestar Automotive Holding UK PLC Sponsored ADR Class C Corporate Events
Polestar Posts Record H1 2026 Retail Sales as New Models and Retail Expansion Offset Headwinds
Jul 9, 2026
On July 9, 2026, Polestar reported that its retail sales reached an estimated record 30,423 cars in the first half of 2026, with 17,296 cars sold in the second quarter, representing marginal overall growth year-on-year but a 4% decline in quarterl...
Polestar Converts $640 Million of Shareholder Debt to Equity and Expands Green Trade Finance Line
Jul 1, 2026
On June 30, 2026, Polestar completed debt-to-equity conversions of approximately USD 300 million owed to Geely Sweden Automotive Investment and USD 66 million owed to Volvo’s subsidiary Snita, issuing a total of 19.4 million Class A ADS and ...
Polestar Shareholders Back All AGM Resolutions and Appoint New Auditor
Jun 26, 2026
On June 26, 2026, Polestar Automotive Holding UK PLC held its 2026 annual general meeting of shareholders, at which a quorum representing 2,686,453,200 votes was present. Shareholders approved the 2025 annual report and audited financial statement...
Polestar Refocuses on Europe After U.S. Connected Vehicle Rule Blocks 2027 Sales
Jun 25, 2026
On June 25, 2026, Polestar announced it is sharpening its strategic focus on Europe, which already accounts for close to 80% of its retail sales, by expanding its regional sales network and preparing to localize manufacturing of future models such...
Polestar Extends Geely Term Loan to 2027 and Raises Margin
Jun 3, 2026
On June 3, 2026, Polestar Automotive Holding UK PLC amended its term facility agreement with affiliate Geely Sweden Automotive Investment AB, extending the loan’s termination date from December 2025 to June 30, 2027, and modestly increasing ...
Polestar Sets June 26 AGM as It Prepares Major EV Model Offensive
May 19, 2026
Polestar Automotive Holding UK PLC, a pure-play European electric vehicle maker, reported that in 2025 it increased retail sales volumes by 34% and expanded its dealer network by 50%, as it prepares a major product offensive with four new models o...
Polestar Posts Record Q1 2026 Volumes but Deeper Losses Amid Tariff and Pricing Pressure
May 7, 2026
On May 7, 2026, Polestar reported selected preliminary, unaudited results for the quarter ended March 31, 2026, highlighting record first-quarter retail volumes of 13,126 cars, up 7% year-on-year, and revenue essentially flat at USD 633 million. D...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.