- Polestar is planning to conduct a 1:30 reverse stock split later this year.
- The move would help them meet the Nasdaq’s minimum of $1.00.
- The company’s stock plummeted 15.8% today to close at $0.53.
Polestar investors got a nasty surprise on Halloween as the beleaguered automaker revealed their stock was in danger of getting delisted from the Nasdaq. At the time, the company’s stock closed at $0.84, which put them well below the $1.00 requirement.
Fast forward to today and things are looking even worse as Polestar’s stock has plummeted to $0.53. That’s a decline of nearly 37% in just a matter of weeks.
More: Polestar’s Stock Hangs By A Thread As Nasdaq Sounds The Alarm
Today alone, there was a 15.8% drop and it can likely be chalked up to their plan to regain compliance. It calls for a 1:30 reverse stock split, which would boost the PSNY price to $15.90 per share at today’s levels.
The move reeks of desperation and reverse stock splits have commonly been used by questionable EV startups. Among them are Mullen, Faraday Future, and Lordstown.
Polestar / Refinitiv
Those aren’t names you want to be associated with and it’s embarrassing given that Polestar is a major automaker. That being said, the company aims to move forward with the reverse stock split before the end of 2025.
A Mixed Year And Third Quarter
The move comes just two days after Polestar reported their third quarter results and tried to paint a rosy picture. Among the good news was a 36.5% increase in retail sales as the automaker moved 44,482 units in the first nine months of the year. Revenues also soared 48.8% to $2.17 billion, thanks to increased sales, carbon credits sales, and a growing share of higher priced vehicles.
However, there was plenty of bad news including a $1.56 billion net loss, which compared to an $867 million loss in the first nine months of 2024. The company is also getting hammered by tariffs and noted there is pricing pressure on top of that.
Thankfully, the future looks brighter as the company recently revealed an updated 3 and an all-new 5. The automaker also kicked off the teaser campaign for the 7, which will be launched in 2028 and likely be based on the new SPA3 platform. It will be a premium compact crossover that uses a “technology base from Volvo” and will be built at their new plant in Kosice, Slovakia.
