Polestar Automotiv Holding UK PLC announced on Wednesday that it will undertake a reverse stock split, a strong measure intended to maintain its Nasdaq Stock Market listing, given its rising losses and a poor share price. For the Polestar Q3 ended September 30, the company reported a net loss of $365 million, worse than $323 million in the same quarter a year ago. Despite the loss, the company’s revenue rose 36% year-on-year, reaching higher sales, but costs related to U.S. tariffs.
The Swedish electric vehicle maker, Polestar, reported a 36% year-on-year rise on the revenue side, raising its top line to almost $748 million. Though income rose, the share price scenario has generated a sense of urgency.
Polestar’s American-listed shares have often traded under the US$1 minimum bid price threshold necessary for continued Nasdaq listing. Actually, the business was officially warned in late October with a due date of April 29, 2026, to come back into compliance.
The management of Polestar says that the reverse split will “reduce the number of existing shares while simultaneously raising the share price,” with specifics to follow shortly. The action is totally mechanical; it does not change the total worth of shareholder equity.
According to CEO Michael Lohscheller, the movement was meant to help stabilise operations and change the focus of the business. He referred to sustained strain from tariff-related expenditures, lease residual-value guarantee charges in North America, and delayed model releases.
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Analysts see the opposite split as a distinct red flag pointing to the problems Polestar and the whole electric-vehicle (EV) sector are under. Although volumes did rise (about 14,192 cars sold in Q3, up about 13% year-on-year), the expanding losses highlight how challenging it still is to convert expansion into income. Polestar aims to cut its cost structures, negotiate loan liabilities and grow its dealer-based approach to boost its financial flexibility.
