US Regulator Opens Recall Query Into Nearly 28,000 Polestar 2 Vehicles, But Retail’s Buoyant

U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) has opened a recall query into 27,816 of EV maker Polestar’s (PSNY) Polestar 2 vehicles over concerns that the rear-view camera display may face issues when backing.

PSNY shares were trading 1% higher in the pre-market session.

The regulator noted that a failure to display the rear-view image when backing will increase the risk of a crash.

NHTSA said that it received 109 complaints for rear-view camera failures on model year 2021 to model year 2025 Polestar 2 vehicles.

Polestar had recalled certain Polestar 2 vehicles for visualization issues while backing in 2024 and again earlier this year. The company proposed to fix the issue both times via a software update.

However, NHTSA received complaints from consumers stating that rear-view cameras were nevertheless continuing to fail despite the software updates.

Polestar also confirmed that their software remedy did not correct the original issue.

The recall query aims further to evaluate the adequacy of Polestar’s recall remedy.

Swedish EV maker Polestar has three models in its global line-up, including the Polestar 2, Polestar 3, and Polestar 4. The company is planning to expand its lineup with more models, including the Polestar 5 four-door GT, the Polestar 6 roadster, and the Polestar 7 compact SUV.

The company said on Thursday that its global retail sales volume rose 38% year-on-year to an estimated 18,049 cars in the second quarter (Q2). For the first six months of the year, retail sales volumes grew 51% to approximately 30,319 cars.

On Stocktwits, retail sentiment around PSNY jumped to ‘extremely bullish’ from ‘bullish’ over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.

PSNY stock is up by 9% this year and by about 23% over the past 12 months.

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