Polestar’s stock value is nearing collapse once more.
The electric car brand’s shares have fallen below $1, putting it at risk of being delisted from the Nasdaq in accordance with New York Stock Exchange rules.
Under Nasdaq Rule 5450, stocks trading below $1 for 30 consecutive days are subject to delisting.
On Monday, Polestar’s stock closed at 97 cents, and if the price does not recover soon, the company could receive an official warning.
An Uncertain Future
The future of Polestar is increasingly precarious.
After a brief uptick in stock value when Michael Lohscheller took over as CEO, replacing the ousted Thomas Ingenlath, Polestar’s shares have plummeted again.
According to Yahoo Finance, Polestar’s financial struggles are evident.
The company has postponed the publication of its third-quarter financial statements until January 16.
On this date—or shortly thereafter—the company’s fate will be determined as the new management is expected to present an updated strategy and business plan.
Polestar will need to persuade investors it has a viable turnaround plan to avoid delisting.
Operational Struggles
Polestar’s woes extend beyond financial instability.
Plans for a grand headquarters in Sweden have been scaled back due to a lack of willing contractors. On top of that, Polestar’s core product—its cars—faces serious criticism. U.S. market bans on Chinese hardware and software add to the company’s challenges, while unresolved technical issues plague its vehicles.
Drivers have reported problems with acceleration, non-functional buttons, and even disappearing speedometers in otherwise brand-new models.
These flaws further erode trust in the brand, making it harder to attract new buyers or investors.
