NEW YORK, Feb 5, 2026, 15:13 EST
- Polestar shares surged to $17.35, climbing roughly 36%, before slipping back near $16
- The EV maker plans to finalize a $400 million PIPE deal, with each U.S.-traded ADS priced at $19.34
- Despite the jump, analysts tracked by MarketBeat maintain a “Reduce” rating on the stock
Shares of Polestar Automotive Holding UK surged up to 36% on Thursday, hitting a peak of $17.35 before easing back to roughly $16 later in the session. The U.S.-listed EV maker had closed at $12.74 on Wednesday. Over the past year, its stock has fluctuated between $11.75 and $42.60, according to data from Hargreaves Lansdown.
The rally is significant as Polestar is set to complete a $400 million private investment in public equity (PIPE), a private share sale by a listed company, according to a U.S. filing. The shares in this deal are priced at $19.34 per American depositary share (ADS), which represents foreign shares traded in the U.S. The transaction is expected to wrap up by Feb. 5.
Investors in the PIPE hold a put option with a Geely Sweden unit, allowing an exit after three years, according to the press release attached to the filing. CEO Michael Lohscheller said the move was aimed at “enhancing our liquidity position and strengthening our balance sheet” with backing from Geely.
Wall Street remains cautious despite the stock’s recent surge. According to MarketBeat data, two analysts have Polestar rated as Hold, with one tagging it Sell—averaging out to a “Reduce” rating even after Thursday’s gain. MarketBeat
A separate item on Finviz dated Feb. 3 highlighted a bullish thesis from a retail investor on Reddit, noting that Polestar is being priced like a struggling startup. This comes despite the company delivering over 44,000 vehicles in the first nine months of 2025 and racking up more than $2.17 billion in revenue. The post also underscored Geely’s support as a safety net and revealed Polestar finished Q3 2025 with about $995 million in cash.
Polestar has been scrambling to secure funding as the EV market cools and price wars squeeze weaker players. On Feb. 2, the company announced it landed a $400 million investment from Feathertop Funding, a special purpose vehicle backed by Sumitomo Mitsui Banking Corp and Standard Chartered. This follows a $300 million equity injection from BBVA and Natixis and a loan deal of up to $600 million with majority owner Geely last December.
The tight competition is nothing new. Tesla has relied heavily on slashing prices, while smaller players like Rivian and Lucid juggle growth ambitions alongside the need to conserve cash.
The downside is clear: funding might fall short, and any slip on liquidity or listing rules could slam the stock. Nasdaq issued a warning to Polestar back in October, giving them until April 29, 2026, to meet the exchange’s minimum bid price.
Despite the recent jump, Polestar remains roughly 17% under the $19.34 per-share PIPE price, a gap investors will monitor closely as the deal wraps up and new shares begin trading.
