NEW YORK — As of 9:00 a.m. ET on Friday, December 26, 2025, the U.S. stock market has not opened for the regular session yet (9:30 a.m.–4:00 p.m. ET), and trading conditions are typically thinner than usual in the post-Christmas stretch. [1]
Against that backdrop, Polestar Automotive Holding UK PLC (Nasdaq: PSNY) is entering the day with investors focused on three big themes: a liquidity lifeline backed by Geely, the company’s recent 1-for-30 reverse split/ADS ratio change, and the ongoing tug-of-war between growing sales and still-painful losses in a highly competitive EV market.
PSNY was indicated around $17.18 in the latest reported quote ahead of the opening bell.
The broader market setup matters today (especially for high-volatility EV stocks)
Friday’s session is shaping up as a classic “holiday hangover” tape: lighter volumes, potentially exaggerated moves, and lots of macro narrative. Reuters reported that U.S. index futures were hovering near flat ahead of the open, after the S&P 500 and Dow notched record closes earlier in the week in a holiday-shortened session. [2]
Investors are also looking beyond year-end window dressing to 2026 expectations—particularly the market’s belief that rate cuts and earnings growth could keep equities buoyant. In the same Reuters report, Brian Jacobsen (Annex Wealth Management) framed 2026 as a “prove-it year,” arguing companies will need to deliver real productivity and margin gains from big investment cycles like AI. [3]
That macro angle matters for Polestar because EV makers—especially those still burning cash—tend to trade like a levered bet on the cost of capital and risk appetite. And with year-end positioning underway, Reuters also flagged that thin trading can amplify price swings. [4]
Is the exchange closed right now? Yes—and here’s why that matters for PSNY
At 9:00 a.m. ET, the market is still pre-open.
And because the week has been chopped up by holiday hours—early close on Dec. 24 and closed on Dec. 25—price discovery can be jumpier than normal when the full market reopens. [5]
For investors considering a trade in the next session, the practical implication is simple:
- Don’t overread premarket prints in a thin tape.
- Expect wider spreads and faster moves at the open than you’d see in a normal mid-week session.
- Double-check corporate-action-adjusted data (more on that reverse split in a moment).
Why Polestar stock is on the radar: a funding package designed to stabilize liquidity
1) The $300 million equity raise (PIPE) plus a $300 million debt-to-equity conversion plan
On December 19, Polestar announced a $300 million private investment in public equity (PIPE), with Banco Bilbao Vizcaya Argentaria (BBVA) and Natixis investing $150 million each. Polestar also disclosed that a Geely Sweden entity agreed to convert roughly $300 million of shareholder loan principal and interest into equity (subject to regulatory approvals). [6]
Key details investors latched onto:
- Polestar agreed to sell 15,511,892 Class A ADSs for the $300 million PIPE at $19.34 per ADS. [7]
- Polestar said no single purchaser would own more than 10% after closing. [8]
- The structure includes put option arrangements between the new investors and a Geely Sweden subsidiary—an important signal that Geely is effectively providing an “exit path” under certain terms. [9]
Polestar CEO Michael Lohscheller summarized the intent plainly: the transactions are meant to strengthen liquidity and the balance sheet. [10]
What investors should infer (carefully):
This is a “keep-the-engine-running” package. It can reduce near-term funding stress—but it also underscores that Polestar remains in a stage where capital structure engineering is a core part of the story.
2) The Geely-backed $600 million loan facility
Separately, on December 16, Reuters reported Polestar entered into a loan agreement of up to $600 million with its majority owner Geely Holding, delivered via Geely’s Swedish unit. Reuters noted the loan is described as “subordinated,” meaning it doesn’t count toward Polestar’s debt covenants (reported at $5.5 billion). [11]
Reuters added that the final $300 million tranche requires lender consent based on Polestar’s future liquidity needs. [12]
Why this matters for PSNY trading:
In the EV sector, a lot of equity value is a function of “How long can they fund the ramp?” This facility is another signal that Geely is still acting as a financial backstop—even as public shareholders face dilution risk through equity issuance.
The reverse split/ADS ratio change: what happened, and why investors must re-check their numbers
Polestar completed a one-for-thirty (1-for-30) reverse split and ADS ratio change, effective Tuesday, December 9, 2025, according to Nasdaq’s corporate action alert. [13]
Nasdaq’s notice also flagged CUSIP changes for PSNY and PSNYW in conjunction with the action. [14]
Options traders got their own complexity: OCC’s info memo explained contract adjustments, including a symbol change (e.g., PSNY to PSNY1 for adjusted contracts) and cash-in-lieu handling for fractional shares. [15]
The important investor takeaway
A reverse split does not create value by itself. It changes the share count and price per share mechanically. Companies most commonly do this to maintain exchange listing standards (Polestar previously faced pressure with a sub-$1 share price, as earlier reporting highlighted). [16]
But here’s the trap: reverse splits frequently scramble data feeds. After a 1-for-30 action, you can see:
- Analyst targets that look like they jumped 2,000%+ (often just reflecting the new share/ADS ratio).
- Historical charts that don’t match what you remember.
- Short interest and volume metrics that appear to “collapse” or “explode” depending on whether a provider adjusted the denominator.
If you’re researching PSNY, make sure the site you’re using explicitly indicates it has adjusted for the Dec. 9, 2025 corporate action. [17]
Polestar’s fundamentals: growth is real, but profitability is still the boss fight
Polestar’s recent operational updates paint a mixed picture: sales and revenue improving, but losses and margin pressure remain significant.
Sales momentum (especially in Europe)
Polestar reported Q3 2025 retail sales of about 14,192 vehicles (+13% YoY) and year-to-date retail sales of about 44,482 (+36% YoY). [18]
Reuters also quoted CEO Lohscheller saying Polestar had sold as many cars as in all of 2024, pointing to stronger order intake even amid external headwinds. [19]
Financial results: revenue up, but losses remain heavy
In a Business Wire release covering select unaudited results, Polestar reported:
- Revenue:$2.171B for the first nine months of 2025 (+48.8% YoY) [20]
- Q3 revenue:$748M (+36% YoY) [21]
- Cash balance:$995M as of Sept. 30, 2025 [22]
- Net loss:$(1.558)B for the first nine months of 2025 [23]
A major distortion in margins came from a non-cash impairment expense of $739M related to Polestar 3, which pushed reported gross margin deeply negative over the nine-month period. [24]
So yes—revenue is growing, but the company is still fighting for sustainable gross margins, especially as pricing competition, tariffs, and residual-value related costs pressure results. [25]
Strategy shift: Europe first, supply chain rework, and “don’t grow in the U.S. at any cost”
Polestar has been increasingly explicit that Europe is the priority market—not just for brand strength, but for economics.
In May, Reuters reported Lohscheller told analysts Europe had “the highest priority,” citing brand awareness and service/dealer infrastructure (often linked with Volvo’s footprint). [26]
Meanwhile, tariffs and EV demand patterns are reshaping manufacturing and delivery plans:
- Reuters reported Polestar has said it won’t grow in the U.S. “at any cost,” due to financial exposure, while demand and consumer preferences shift. [27]
- Reuters and other reporting also highlighted supply chain changes across the industry in response to tariffs, with Polestar and peers reconfiguring production footprints. [28]
- Polestar’s production diversification includes South Korea for certain models, as covered in prior reporting. [29]
This is less about geography trivia and more about margin math: where you build a vehicle can decide whether tariffs, logistics, and incentives turn a sale into a profit—or a slow-motion liability.
Forecasts and analyst outlook: price targets exist, but interpret them through the reverse split
Analyst coverage of PSNY isn’t as deep as mega-cap autos or Tesla, but there are still published targets and sentiment indicators.
A Nasdaq article (sourced to Fintel) stated the average one-year price target was revised to $30.60/share, with targets ranging from $30.30 to $31.50. [30]
However, that same piece notes the target had previously been $1.22—and the jump is mathematically consistent with a 1-for-30 reverse split/ADS ratio change, not necessarily a sudden wall of newfound optimism. [31]
Other market-data sites mirror similar target ranges (often reflecting the same underlying analyst set). [32]
The “street debate” in plain English
- Bull case: Sales growth in Europe, expanding dealer footprint, new models, and—crucially—Geely-backed liquidity relief that reduces near-term survival risk. [33]
- Bear case: Large ongoing losses, margin volatility, potential further dilution, and the reality that reverse splits don’t fix unit economics. (Some recent opinion analysis remains cautious on these points.) [34]
What investors should know before the next session (today’s open at 9:30 a.m. ET)
Because the regular session hasn’t opened yet, here’s a practical pre-bell checklist tailored to PSNY’s specific situation:
1) Watch for filings and confirmations around financing
Polestar’s December funding announcements are detailed, structured, and material. Investors should monitor for follow-up disclosures—especially around timing, conditions, and any equity conversion steps that require regulatory approvals. [35]
2) Be prepared for holiday-thin volatility
Reuters emphasized that light trading volumes can exaggerate moves—particularly at year-end. That’s relevant for PSNY, which has a history of outsized percentage swings. [36]
3) Put the reverse split in its proper mental box
Today’s quotes, targets, options chains, and “52-week low/high” markers can look wildly different across platforms if they’re not all adjusted to the Dec. 9 effective date. Use corporate-action-aware sources (Nasdaq/OCC notices are the clean reference points). [37]
4) Mark the next near-term catalyst: Q4 volume update
Polestar said it expects to report Q4 2025 retail sales volumes on January 9, 2026—a key checkpoint for whether demand momentum held into year-end. [38]
5) Keep one eye on rates (yes, even for an automaker)
Markets are heavily focused on the path of Fed cuts into 2026, with Reuters highlighting how central that question is for investors right now. For capital-hungry EV makers, the cost of money is not background noise—it’s part of the plot. [39]
Bottom line
As of 9:00 a.m. ET on Dec. 26, Polestar (PSNY) is heading into the open with a headline-friendly mix of fresh financing and corporate action turbulence—the kind of combo that can drive sharp moves when liquidity is thin. [40]
The recent funding packages tied to Geely help answer the immediate question—“Does Polestar have runway?”—but the longer-term question remains the hard one: Can it turn growing sales into durable margins and materially smaller losses? The company’s own results show growth, but also emphasize how quickly impairments, tariffs, and pricing pressure can swamp progress. [41]
For investors, today is less about a single premarket tick and more about whether the opening session confirms that the market is re-pricing PSNY as a “survival-to-stability” story—or simply trading the volatility that comes with reverse splits and year-end tape conditions. [42]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.nasdaqtrader.com, 6. www.businesswire.com, 7. www.stocktitan.net, 8. www.stocktitan.net, 9. www.stocktitan.net, 10. www.streetinsider.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.nasdaqtrader.com, 14. www.nasdaqtrader.com, 15. infomemo.theocc.com, 16. www.reuters.com, 17. www.nasdaqtrader.com, 18. www.businesswire.com, 19. www.reuters.com, 20. www.businesswire.com, 21. www.businesswire.com, 22. www.businesswire.com, 23. www.businesswire.com, 24. www.businesswire.com, 25. www.businesswire.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.nasdaq.com, 31. www.nasdaq.com, 32. www.alphaspread.com, 33. www.businesswire.com, 34. seekingalpha.com, 35. www.stocktitan.net, 36. www.reuters.com, 37. www.nasdaqtrader.com, 38. www.businesswire.com, 39. www.reuters.com, 40. www.nasdaqtrader.com, 41. www.businesswire.com, 42. www.reuters.com
