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Polestar Automotive Holding UK
(NASDAQ:PSNY)
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Rating:44Neutral
Price Target:
$14.00
▲(12.90% Upside)
Action:Reiterated
Date:08/19/26
PSNY’s score is weighed down primarily by weak financial performance (negative gross profit, large losses, ongoing cash burn, and a stressed balance sheet with negative equity and rising debt). Technical indicators also reflect a bearish trend with the stock below key moving averages and a negative MACD. The earnings call provides some offset via volume growth, cost reductions, and anticipated debt-to-equity conversions, but near-term margins and profitability remain pressured; valuation is difficult to support with a negative P/E and no dividend yield provided.
Positive Factors
Growing EV volumes and European market traction
Sustained volume growth, particularly in Europe and key markets such as Germany and the UK, indicates improving product acceptance and provides a foundation for operating leverage as Polestar scales.
Negative Factors
Persistent negative margins and substantial losses
Negative gross margins show that vehicle economics remain unproven even as volumes grow. Continued large operating and net losses limit internal funding capacity and make a durable path to profitability uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Growing EV volumes and European market traction
Sustained volume growth, particularly in Europe and key markets such as Germany and the UK, indicates improving product acceptance and provides a foundation for operating leverage as Polestar scales.
Read all positive factors
Polestar Automotive Holding UK Key Performance Indicators (KPIs)
Polestar Automotive Holding UK (PSNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.81B
Dividend YieldN/A
Average Volume (3M)150.61K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth50.33%
EPS Growth-1.26%
CountryUS
Employees1,686
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-26.96
Shares Outstanding143,865,250
10 Day Avg. Volume191,062
30 Day Avg. Volume150,611
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)-0.39
Price to Sales (P/S)0.65
P/FCF Ratio-1.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$15.00Price Target Upside20.97% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)-9.23
Revenue Forecast (FY)$3.71B
Polestar Automotive Holding UK Business Overview & Revenue Model
Company Description
Polestar Automotive Holding UK PLC, an enterprise established in 2017 and based in Gothenburg, Sweden, specializes in the production and global distribution of upscale electric automobiles....
How the Company Makes Money
Polestar primarily makes money by selling Polestar-branded vehicles to end customers and, in some cases, through wholesale arrangements with retail/partner channels. Vehicle revenue is generated from the purchase price of new cars and can be influ...
Polestar Automotive Holding UK Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational progress (record Q1 volumes, geographic and retail expansion, product launches and organizational cost actions) and a solid liquidity base with expected equity/debt conversions, contrasted with material near-term financial pressures (negative gross margins, widening net loss and adjusted EBITDA loss) driven by pricing pressure, tariffs, lower quarter-to-quarter carbon credit sales, and FX headwinds. Management emphasized structural improvements and regionalization as mitigation, but the financial deterioration in the quarter keeps the outlook cautious.Positive Updates
Record First-Quarter Volume Growth
Q1 retail sales grew 7% year-on-year to over 13,100 cars, a record first quarter for Polestar. Europe grew 11% and represented 78% of total sales. Strong market performance included the U.K. (+20%), Germany (+35%) and Sweden (+17%). Polestar 4 accounted for 67% of volumes versus 49% a year earlier.
Negative Updates
Negative Gross Margin
Reported gross margin was negative 3.2% and adjusted gross margin was negative 3.3% in Q1 2026, driven by pricing pressure, impact from EU and U.S. tariffs, lower carbon credit sales in the quarter and a favorable one-off in Q1 2025 that did not recur.
Read all updates
Q1-2026 Updates
Positive
Negative
Record First-Quarter Volume Growth
Q1 retail sales grew 7% year-on-year to over 13,100 cars, a record first quarter for Polestar. Europe grew 11% and represented 78% of total sales. Strong market performance included the U.K. (+20%), Germany (+35%) and Sweden (+17%). Polestar 4 accounted for 67% of volumes versus 49% a year earlier.
Read all positive updates
Company Guidance
Management's guidance reiterated a focus on volume growth and cost discipline while working toward cash-flow improvement: Q1 volumes were >13,100 cars (+7% YoY; Europe +11% and 78% of sales; UK +20%, Germany +35%, Sweden +17%), revenue $633m, gross margin -3.2% (adjusted -3.3%), adjusted EBITDA loss $235m (vs $96m), net loss $383m (vs $166m), cash ~$676m at March 31 and carbon-credit sales $21m in Q1 (vs $29m) but expected to be in line with 2025 (~>$210m full year); priorities and targets include expanding retail points to ~250 by end‑2026 (up from ~150), growing German outlets 12→30 by 2027, reducing staff ~25% to ~1,700, consolidating Polestar 3 production to one South Carolina factory in late‑2026, adding a Polestar 4 variant in Busan, pursuing regionalized manufacturing to mitigate EU/US tariffs, expecting Geely and Volvo debt‑to‑equity conversions of ~ $300m and ~$65m this quarter, and improving ASPs, inventory/working‑capital, CapEx and overall cash burn (average 2025 burn ~$120m) on the path toward profitability and free‑cash‑flow positivity.Polestar Automotive Holding UK Financial Statement Overview
Summary
Income Statement
14
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
12
Very Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.06B | 2.03B | 2.38B | 2.44B | 1.34B |
| Gross Profit | -1.08B | -876.17M | -413.08M | 119.44M | 11.06M |
| EBITDA | -1.93B | -1.67B | -826.89M | -229.51M | -716.10M |
| Net Income | -2.36B | -2.05B | -1.19B | -479.02M | -1.01B |
Balance Sheet | |||||
| Total Assets | 3.93B | 4.05B | 4.12B | 3.94B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 739.24M | 768.93M | 973.88M | 757.93M |
| Total Debt | 6.49B | 5.01B | 3.58B | 1.44B | 825.41M |
| Total Liabilities | 9.05B | 7.38B | 5.38B | 4.08B | 3.19B |
| Stockholders Equity | -5.12B | -3.33B | -1.26B | -133.34M | 122.50M |
Cash Flow | |||||
| Free Cash Flow | -1.37B | -1.35B | -2.03B | -1.80B | -441.83M |
| Operating Cash Flow | -914.99M | -991.21M | -1.89B | -1.09B | -312.16M |
| Investing Cash Flow | -520.68M | -412.56M | -417.62M | -715.97M | -129.67M |
| Financing Cash Flow | 1.69B | 1.42B | 2.10B | 2.09B | 909.57M |
Polestar Automotive Holding UK Technical Analysis
Negative
12.40
Price Trends
15.84
Negative
17.99
Negative
17.84
Negative
Market Momentum
-0.83
Positive
34.30
Neutral
12.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSNY, the sentiment is Negative. The current price of 12.4 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 15.84, and below the 200-day MA of 17.84, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 12.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSNY.
Polestar Automotive Holding UK Risk Analysis
Polestar Automotive Holding UK disclosed 73 risk factors in its most recent earnings report. Polestar Automotive Holding UK reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Polestar Automotive Holding UK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $23.64B | -6.51 | -67.49% | ― | 14.21% | 20.20% | |
50 Neutral | $11.39B | -24.01 | -10.72% | ― | 28.99% | 24.33% | |
49 Neutral | $1.95B | -0.37 | -254.84% | ― | 66.54% | -22.69% | |
48 Neutral | $12.59B | -18.37 | -2.49% | ― | -24.71% | -158.82% | |
47 Neutral | $11.07B | -7.38 | -328.93% | ― | 51.42% | 66.12% | |
44 Neutral | $1.81B | -0.55 | 45.67% | ― | 50.33% | -1.26% |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.