Polestar plans reverse stock split to maintain Nasdaq listing amid rising losses
Electric vehicle maker Polestar announced it will conduct a reverse stock split to boost its share price and maintain its Nasdaq listing, as the company continues to face mounting losses.
The U.S.-listed shares fell about 4% in premarket trading following the announcement, News.Az reports, citing Reuters.
Polestar, majority-owned by China’s Geely Holding and its chair Li Shufu, reported a third-quarter net loss of $365 million, up from $323 million a year earlier. Revenue grew 36% in the same period.
The company has struggled with:
U.S. tariffs and higher costs.
Model delays and stiff competition.
Residual value guarantees in North America, which require covering gaps when used EV resale values fall below promised levels.
Shares have recently traded below $1, prompting Nasdaq to warn of potential delisting due to failure to meet minimum bid price requirements. A reverse stock split reduces the number of shares while increasing their individual price but does not change the total value of investors’ holdings.
CEO Michael Lohscheller said in a statement: “As market conditions remain challenging, we continue to take steps to make our organization and operations more efficient.” Lohscheller previously attempted a similar strategy at now-bankrupt EV truckmaker Nikola.
Polestar has also shifted to a dealer-focused model, emphasized European markets, and scaled back U.S. and China launches for its latest model, the Polestar 5 GT, as demand in North America favors hybrids and gasoline cars.
The company went public in June 2022 via a SPAC merger, with shares initially closing at $13. Since then, the stock has fallen sharply, compounded by debt covenant pressures and the need to renegotiate with lenders.
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