Polestar Automotive downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Alex Potter downgraded Polestar Automotive to Neutral from Overweight with a price target of $2, down from $3, as part of the firm’s sector-wide coverage update. The firm likes Polestar’s “emotive designs,” but given the relentless nature of recent EV price cutting, it is concerned about the company’s relatively high price points. Recent comments from European regulators seem to portend a coming tariff on imported Chinese electric vehicles due to state subsidies and although Polestar is based in Sweden, the company’s parent Geely is a Chinese company and as of now all of Polestar’s vehicles are made in China, the analyst added.