PSNY Stock On Track for Fourth Down Week After Analyst Halves Price Cut

• Deutsche said that Polestar’s growth outlook “remains cloudy.”
• Polestar shares closed 28% lower on September 3, clocking its worst day ever, after the company trimmed its 2026 volume outlook and confirmed it would not fight a U.S. ban on new-model sales.
• Management is now leaning on Europe, which delivered 78% of first-half volume.

Shares of EV maker Polestar Automotive Holding UK (PSNY) slumped 6% on Thursday after Deutsche Bank halved its price target on the stock, citing an uncertain outlook.

Deutsche Bank cut its price target on Polestar to $10 from $20 and kept a Hold rating, saying the company’s growth outlook “remains cloudy.” The new price target implies a potential upside of 26% from the stock’s last closing price on Wednesday.

The Geely-backed electric-car maker’s shares are on track for their fourth consecutive week in the red if the losses hold.

Record Drop After Guidance Cut

Polestar shares closed 28% lower on September 3, clocking its worst day ever, after the company trimmed its 2026 volume outlook and confirmed it would not fight a U.S. ban on new-model sales. First-half deliveries rose only slightly, to 30,423 cars, while revenue fell 4.4% to $1.36 billion. Pricing pressure, weaker carbon-credit sales, and costs tied to the U.S. retreat offset the extra volume. The operating loss narrowed 43% to $629 million, helped by the absence of last year’s large write-downs. Cash stood at about $888 million at the end of June.

Management now sees only “low-to-mid single-digit” volume growth for 2026, down from low double-digit growth. CEO Michael Lohscheller blamed “continued market pressure” and a model shift as the Polestar 2 winds down and the Polestar 4 SUV ramps in the fourth quarter.

No Fight Over US Ban

On the earnings call, CEO Michael Lohscheller closed the door on a challenge to the ban on selling its cars in the U.S. “We will not appeal and accept this decision,” he said.

Polestar can still sell model-year 2026 cars in the United States but not model-year 2027 vehicles. Service and used-car operations will continue.

The U.S. government blocked Polestar from selling new cars in June, starting with the 2027 model year, by denying it a permit under a federal rule that bans cars with software linked to China. After the Commerce Department blocked 2027 models, Polestar said it took “actions relating to employees, dealers and other commercial arrangements.”

The U.S. market represented 6% of first-half retail sales, down from 9% in the same period of 2025, CFO Jean-François Mady said. Charges related to the U.S. government decision are estimated at about $130 million, with more possible, he added.

Management is now leaning on Europe, which delivered 78% of first-half volume. Polestar is also betting on the Polestar 4 SUV with deliveries starting in the fourth quarter, and a Polestar 2 successor in 2027.

How Did PSNY Retail Traders React?

On Stocktwits, retail sentiment around PSNY remained ‘bullish’ over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

A Stocktwits user expects further dilution.

Another user opined that the company’s new CEO could not stop the company's downfall. The company’s current CEO, Lohscheller, took the helm in October 2024, succeeding Thomas Ingenlath.

PSNY stock has fallen over 60% year-to-date. 

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