Polestar stock drops to $7.53 as 52-week low amid earnings and guidance cuts

Polestar Automotive Holding UK Plc (PSNY) reached a new 52-week low of $7.53 on Wall Street, marking a steep decline of 73.96% over the past year. The company’s market capitalization stands at $1.31 billion, reflecting persistent challenges in revenue and profitability. In the second quarter, Polestar reported an adjusted earnings per share loss of -$2.19, exceeding Wall Street’s forecast of -$1.81, while its gross profit margin contracted to -5.69% over the past 12 months—a sign of mounting operational pressures. Despite record first-half retail sales of 30,423 vehicles, the company has adjusted its full-year volume outlook to low-to-mid single-digit growth, citing market pressures and a shift in its product portfolio strategy. Management also noted ongoing concerns about cash burn, despite recent equity and debt financing efforts aimed at improving liquidity. A key regulatory setback—an unappealed U.S. Commerce Department decision blocking sales of Polestar’s model year 2027 and later vehicles—has further strained its revenue and profitability outlook. Analysts at Cantor Fitzgerald downgraded Polestar’s stock to Underweight following the earnings miss and guidance revision. Meanwhile, data from InvestingPro suggests the stock remains undervalued at current levels, though the broader market’s skepticism persists.