Polestar Shares Find Footing Following Record Annual Deliveries

Polestar Auto.adr/a US7311052010

Polestar Auto Holding PLC (NASDAQ: PSNY) shares are showing signs of stabilization as the new trading week begins. This follows the electric vehicle maker's announcement of record delivery figures for 2025, with pre-market activity indicating a steadier tone. Investors are currently balancing the company's impressive volume growth against its persistent challenges with profitability.

A significant step toward stability has been Polestar's successful efforts to regain compliance with Nasdaq listing requirements. By adjusting its American Depositary Share (ADS) ratio to 1:30, the company elevated its share price above the critical one-dollar threshold, effectively averting the immediate risk of delisting.

Furthermore, the company's balance sheet has been reinforced by a $600 million loan from a subsidiary of its major shareholder, Geely. An additional $300 million in debt-to-equity conversions provided further financial support. Management views these capital injections as vital for achieving its target of reaching cash flow break-even.

The strategic focus of the company has undergone a notable geographical shift. Europe now constitutes a substantial 78% of Polestar's total delivery volume. Chief Executive Michael Lohscheller attributes recent success to a 50% expansion of the distribution network and a shift toward an agency sales model. This European concentration is helping to offset softening demand in the U.S. market. Conversely, Polestar has largely exited the Chinese market, which it describes as "hyper-competitive."

Record Volume Meets Market Skepticism

The catalyst for the recent share price movement was weekend data revealing Polestar delivered 60,119 vehicles in 2025. This represents a 34% increase compared to its 2024 performance. Growth momentum accelerated in the final quarter, reaching 27%.

Despite these record numbers, the market's initial reaction on Friday was a share price decline of 5.45%. Market experts interpret this as a classic "sell-the-news" event, following a substantial 22% rally in the stock over the preceding two weeks. Underlying concerns continue to center on the company's negative gross margins, which recently stood at approximately -6%, weighing on investor sentiment.

Upcoming Catalysts and the Path to Profitability

Investors are now looking ahead to February 18, 2026, when Polestar's leadership team is scheduled to provide a comprehensive strategy update. This presentation is expected to include financial projections for 2026 and a revised timeline for the launch of the Polestar 7 compact SUV.

The central question for the market remains whether the company's increased sales volume can finally translate into narrower operating losses. The upcoming strategy announcement will be scrutinized for a credible pathway to sustainable profitability.