PSNY Stock Slumps 14% On Reverse Stock Split Plan, Wider Q3 Loss

• For the third quarter, the company reported revenue of $748 million, representing a 36% increase from the corresponding period in 2024, but below the Wall Street estimate of $850 million.
• Net loss in the quarter, meanwhile, widened to $365 million from a loss of $323 million in the corresponding quarter of last year.
• Company executives pinned the disappointing quarter on ‘external headwinds,’ notably tariff and pricing pressure.

Shares of Polestar (PSNY) slumped 14% on Wednesday afternoon after the Swedish automaker stated it plans to launch a reverse stock split to maintain its listing on the Nasdaq. The company also posted its third-quarter earnings on Wednesday.

Details of the reverse split will be announced in time, the company said. Late last month, Polestar received a notice from Nasdaq stating that it is not in compliance with the minimum bid price requirement for continued listing on the bourse. The company now has until April 29 to regain compliance, and the reverse stock split is intended to increase the company’s price per share by reducing the number of outstanding shares.

Q3 Earnings

For the third quarter, the company reported revenue of $748 million, representing a 36% increase from the corresponding period in 2024, but below the Wall Street estimate of $850 million.

The revenue growth, though below expectations, was spurred by a 13% increase in retail sales in the three months through the end of September to 14,192 cars. The volumes of higher-priced models, such as the Polestar and Polestar 4, also rose in the quarter, the company said.

Net loss in the quarter, meanwhile, widened to $365 million from a loss of $323 million in the corresponding quarter of the previous year, owing to higher gross loss, higher sales agency remuneration linked to growing sales volume, and lower other operating income, the company stated.

“The result of Q3 has been clearly disappointing for us. First, we are continuing suffering pricing pressure on our vehicle in addition to having a higher cost of production due to the duties,” CFO Jean-Francois Mady said.

Polestar is majority owned by China’s Geely and its chairman. The company is currently attempting to cut costs through various measures, including job cuts.

“We will continue to optimize the structure of our operations and expect to end the year at approximately 2,000 employees, down from 2,500 at the start of the year, a reduction of 20%. This process will continue as we take steps to protect our business in the face of industry headwinds,” CEO Michael Lohscheller said.

Lohscheller took the helm of Polestar last year. He was previously the CEO of the now-bankrupt EV truckmaker Nikola Corporation.

How Did Stocktwits Users React?

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

A Stocktwits user termed the stock a “sinking ship” but expressed hopes for a final squeeze.

Another expressed optimism about the company’s prospects.

PSNY stock is down 35% this year and 44% over the past 12 months. 

Also See: Toyota Commits Up To $10B Additional Investments In US Over Five Years

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