Updated: Sunday, December 14, 2025
Polestar Automotive Holding UK PLC’s U.S.-listed stock (Nasdaq: PSNY) is drawing fresh attention this weekend after a 1-for-30 reverse split–style ADS ratio change took effect earlier this week, reshaping the share count and headline price but not the company’s underlying challenges: cash burn, tariffs, and a race to stabilize margins while scaling deliveries. [1]
Key takeaways for Polestar investors today
- The reverse split equivalent is already effective: Polestar’s ADS ratio changed to 1 ADS = 30 ordinary shares, with the trading-price impact expected at the open on Dec. 9, 2025. [2]
- Nasdaq compliance remains the near-term driver: The move is tied to a minimum bid-price deficiency timeline that Polestar has publicly addressed in recent disclosures and reporting coverage. [3]
- Fundamentals are improving in volume and revenue—but losses are still large: Polestar reported $2.171B revenue for the first nine months of 2025, 44,482 retail sales, and $995M cash, alongside a $1.558B net loss for the same period. [4]
- Tariffs and U.S. policy uncertainty keep forecasts volatile: Earlier in 2025 the company paused 2025 guidance citing tariff/regulatory uncertainty, even as it reiterated multi-year sales growth targets. [5]
- Street and independent research commentary remains cautious: Recent write-ups emphasize liquidity and funding risk as central, despite long-term upside cases. [6]
What happened to Polestar stock this week
Because U.S. markets are closed on Sunday, December 14, the latest “as-of” snapshot reflects Friday’s trading (Dec. 12) and the volatile sessions that followed the corporate action earlier in the week.
Public market data showed PSNY trading around $14.33 on Friday, with a sharp single-day move highlighted across market coverage. [7]
That volatility is consistent with what investors often see after reverse splits: new headline price, new round lots, repositioning by funds and retail accounts, and mechanical adjustments across brokers and derivatives—all occurring while the market re-anchors valuation to the same underlying business.
Reverse split vs. ADS ratio change: what Polestar actually did
A key nuance in today’s Polestar story is that the company implemented its move as an American Depositary Share (ADS) ratio change—which functions like a reverse split for U.S. trading—but does not change the company’s underlying ordinary shares.
Polestar disclosed that the effective date is Dec. 9, 2025, and that the trading-price impact was expected at the open of trading that day. [8]
Mechanically:
- The ADS ratio moved from 1 ADS = 1 ordinary share to 1 ADS = 30 ordinary shares. [9]
- ADS holders generally received 1 new ADS for every 30 existing ADS (with cash paid for fractional entitlements via aggregation and sale). [10]
- The ticker symbols remained PSNY for the Class A ADSs and PSNYW for the warrants/related ADS class references in company communications. [11]
Why this matters: if you’re comparing “before vs. after” prices, be careful—many data feeds retroactively adjust historical prices for reverse splits/ratio changes, which can make older prices look much higher than what actually printed at the time.
Options and derivatives: the OCC adjustment traders should know
For traders who follow listed options (or anyone who hedges with contracts), the corporate action also triggered standard OCC contract adjustments.
In an OCC information memo, options were adjusted with a new deliverable structure (reflecting the 1-for-30 change), including an updated option symbol convention for the adjusted contracts. [12]
If you trade PSNY options, the practical takeaway is simple: double-check the deliverable and multiplier inside your broker’s contract specs before assuming “100 shares per contract” still applies in the usual way post-adjustment. [13]
Why Polestar did it: Nasdaq listing pressure is the headline catalyst
Polestar’s reverse split–style action is best understood as a listing compliance maneuver, not a fundamental turnaround signal by itself.
Reuters reported that Polestar received a Nasdaq notice related to not meeting the exchange’s minimum bid price requirement, after the stock had been pressured by competition and broader challenges. [14]
That context is echoed in more recent reporting around the company’s broader restructuring and the decision to pursue a reverse split to stay listed. [15]
A note on dates: why some sites still mention “Dec. 30”
On Dec. 14, at least one widely-syndicated market article stated Polestar’s reverse split would occur on Dec. 30. [16]
However, Polestar’s own disclosures and market notices indicate the ADS ratio change took effect Dec. 9, 2025. [17]
If you’re reconciling feeds this weekend, treat company filings/notices and exchange/depositary documentation as the source of truth.
Polestar’s latest fundamentals: growth in 2025, but losses and impairments loom large
The most recent “hard numbers” Polestar investors are leaning on into year-end come from the company’s third-quarter / year-to-date update.
In its Nov. 12, 2025 release, Polestar reported (first nine months ended Sept. 30, 2025):
- Revenue:$2,171M (up ~49% YoY)
- Retail sales:44,482 cars (up ~36.5% YoY)
- Net loss:$(1,558)M
- Cash balance:$995M
- Carbon credits sales:$123M in the period
- Adjusted gross margin:(1.8)% (non-GAAP), while reported gross margin was substantially lower due to impairment impacts [18]
A major swing factor behind margin optics in 2025 has been impairment and tariff pressure. Reuters previously reported a $739M impairment charge tied to the Polestar 3 (in the context of a wider loss), underscoring how quickly EV program economics can change when pricing and tariffs move against the plan. [19]
A more encouraging datapoint earlier in 2025
Earlier this year, Reuters reported Polestar narrowed its quarterly loss on cost-saving actions and mix improvements, with revenue growth and a gross-margin improvement in that period. [20]
That “improving—but not fixed” pattern is still the core of the Polestar equity debate going into 2026.
The tariff factor: why forecasts have been unstable in 2025
One reason PSNY has remained a high-beta, headline-sensitive EV name is that its outlook has been repeatedly reshaped by tariffs, policy shifts, and supply chain localization efforts.
Polestar stated in April 2025 that it was pausing financial guidance for 2025, explicitly citing uncertainty around tariffs and regulations, while still targeting 30–35% compound annual retail sales volume growth for 2025–2027. [21]
Reuters covered the same guidance pause and linked it to tariff uncertainty and industry-wide forecast resets. [22]
The implication for investors: near-term modeling is unusually sensitive to where vehicles are built, what components qualify under changing rules, and how much tariff cost can be absorbed vs. passed through—which is why Polestar’s headline financial guidance has been more cautious than its longer-term ambition.
Liquidity and “going concern” language: the risk investors keep circling back to
Beyond sales and tariffs, PSNY’s defining investor risk remains its funding runway.
Polestar’s filings have included explicit language about substantial doubt regarding the company’s ability to continue as a going concern, depending on financing execution and other mitigations. [23]
That doesn’t automatically mean bankruptcy—but it does mean that future capital raises, covenant negotiations, and strategic support can have outsized influence on equity value.
Earlier in 2025, Reuters also reported Polestar secured additional loan funding (up to $450M) as the company worked to bolster liquidity amid cash burn and delayed reporting. [24]
Forecasts and analyst perspectives as of Dec. 14, 2025
1) Company-provided long-term targets (not 2025 guidance)
The cleanest “forecast” investors can cite directly from the company right now is the multi-year sales growth target, because 2025 guidance was paused.
Polestar reiterated it targets 30–35% compound annual retail sales growth for 2025–2027, even while pausing specific 2025 financial guidance. [25]
2) Independent analysis: upside cases depend on funding and execution
A Dec. 14 analysis from Simply Wall St framed the reverse split as a compliance-driven move that increases attention on liquidity pressure and funding needs, while presenting a long-term upside case based on aggressive growth assumptions (with very wide valuation dispersion). [26]
This kind of work is useful as a scenario lens, but the range of outcomes matters: when the key variable is “ability to fund the plan,” valuation models can diverge dramatically.
3) MarketBeat’s “ratings snapshot” leans negative
A Dec. 14 MarketBeat write-up described the stock’s post-action setup and summarized a generally bearish ratings posture (including references to downgrades and “sell” labels), while also citing relatively low institutional ownership in its dataset. [27]
Practical takeaway: sentiment screens are currently cautious, and the stock’s next sustained move likely depends more on proof of margin stabilization and liquidity than on the reverse split mechanics.
4) Earnings-call commentary highlights where growth is coming from
A third-party earnings-call transcript summary highlighted that Polestar’s 2025 growth has been Europe-led, with a smaller U.S. share versus the prior year—consistent with the idea that tariffs and localization challenges are shaping regional strategy. [28]
The bull case for PSNY into 2026
Investors who stay constructive on Polestar stock typically focus on four pillars:
- Sales momentum and mix improvement: higher revenue and a growing share of newer, higher-priced models were cited as drivers in 2025 updates. [29]
- Cost actions starting to show up: earlier 2025 reporting pointed to cost-saving measures and periods of improved gross margin. [30]
- Carbon credit revenue as a buffer: carbon credit sales were meaningful in 2025 results, and EU pooling dynamics have historically made credits relevant for EV makers. [31]
- A clearer path to compliance and broader investor access: staying listed and avoiding delisting mechanics can matter for liquidity and institutional participation. [32]
The bear case for PSNY: why the reverse split doesn’t end the debate
Skeptics of PSNY point to a different set of realities:
- Losses remain large, and impairment charges plus pricing pressure have battered reported margins at different points in 2025. [33]
- Tariffs and regulation can disrupt the model quickly, enough that the company paused its 2025 guidance earlier this year. [34]
- Funding risk is not theoretical, given explicit going-concern language in filings and the ongoing need to secure and renew financing. [35]
- Reverse splits can invite volatility: even when they help with compliance, they can coincide with reduced retail participation or forced selling by mandate-restricted accounts.
What to watch next: the catalysts that could move Polestar stock
If you’re tracking PSNY into the end of 2025 and early 2026, the likely swing factors are:
- Evidence of sustained margin improvement (beyond one-off accounting impacts), especially as the model mix shifts. [36]
- Liquidity actions: additional loans, covenant updates, equity raises, or strategic support. [37]
- Tariff and regulatory developments that alter U.S. economics or push further localization. [38]
- Nasdaq compliance progress, now that the ADS ratio change is in place and the company has made compliance a clear priority. [39]
Bottom line on Dec. 14, 2025
Polestar’s reverse split–equivalent action has reset the optics of PSNY—a higher nominal share price and lower share count—while intensifying the real question investors care about: can Polestar finance and execute its growth plan long enough to reach sustainable margins and cash flow?
The company’s 2025 scorecard so far includes strong revenue and retail sales growth, meaningful carbon credit revenue, and signs of operational cost actions—offset by large losses, impairment impacts, and the continuing overhang of tariffs and funding risk. [40]
References
1. www.businesswire.com, 2. www.businesswire.com, 3. www.reuters.com, 4. www.businesswire.com, 5. www.businesswire.com, 6. simplywall.st, 7. www.investing.com, 8. www.businesswire.com, 9. www.businesswire.com, 10. www.businesswire.com, 11. www.businesswire.com, 12. infomemo.theocc.com, 13. infomemo.theocc.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.marketbeat.com, 17. www.businesswire.com, 18. www.businesswire.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.businesswire.com, 22. www.reuters.com, 23. www.sec.gov, 24. www.reuters.com, 25. www.businesswire.com, 26. simplywall.st, 27. www.marketbeat.com, 28. www.investing.com, 29. www.businesswire.com, 30. www.reuters.com, 31. www.businesswire.com, 32. www.reuters.com, 33. www.businesswire.com, 34. www.businesswire.com, 35. www.sec.gov, 36. www.businesswire.com, 37. www.reuters.com, 38. www.reuters.com, 39. www.businesswire.com, 40. www.businesswire.com
