Polestar Q2 report shows challenges remain, says Barclays

Barclays says Polestar’s Q2 miss was driven by PS2 discounting. The CEO change reinforces a transition year for the company with a focus now on PS3 and PS4 ramps, the analyst tells investors in a research note. The firm expects a reset of targets from the new management team and believes that while the company’s’ funding is sufficient for now, its 2025 free cash flow burn “could challenge this.” Barclays thinks challenges remain at Polestar and maintains an Underweight rating on the shares with a $1 price target.