Polestar Automotive Holding UK PLC (PSNY)

Price$9.21Cached quoteAs of 2026-09-05 19:20 UTC

AI: Overvalued

Price checkThe shares look expensive because lenders outrank owners while the business still consumes cash.

At the observed price, roughly 164.3 million share-receipt equivalents outstanding at June 30 imply an equity value near $1.3 billion. Adding $5.90 billion of borrowings and subtracting $0.89 billion of cash gives an inferred enterprise value near $6.3 billion, about 2.3 times annualized first-half revenue. Enterprise value includes both shares and net debt. That multiple offers little protection when first-half gross margin was negative 8.4% and operating cash outflow was $850 million. The price therefore assumes successful refinancing and a large margin turnaround, supporting an Overvalued verdict.

Big pictureStrong 2025 growth did not produce durable profits, and recent cash performance weakened.

Revenue rose 50% to $3.06 billion in 2025, yet adjusted gross loss remained $22 million and adjusted earnings before interest, tax, depreciation and amortization were negative $783 million. Operating cash outflow was $915 million; after $455 million of capital spending, free cash flow—cash left after running and investing in the business—was about negative $1.37 billion. First-half 2026 revenue then fell 4.4%, while adjusted operating cash earnings worsened to a $521 million loss. Auto demand is seasonal, while pricing pressure and the aging Polestar 2 make recovery less predictable.

Business strengthA growing sales network cannot yet offset Polestar’s debt load and financing dependence.

Polestar sold 30,423 cars in first-half 2026, nearly flat year over year, while sales points grew 38% to 235; broader distribution is a real asset. However, June cash of $888 million sat against $5.90 billion of borrowings, $4.70 billion of net current liabilities, and roughly $4.73 billion of negative book equity. Financing, not internal cash, has sustained investment: ordinary shares increased about 78% from year-end to June after new equity and debt conversions. Polestar pays no dividend and repurchases no shares; conserving cash is sensible, but existing owners bear heavy dilution.

What could change the storyNew models must restore healthy margins and reduce cash losses before refinancing becomes harder.

The bull case requires the Polestar 4 SUV and coming Polestar 2 successor to lift sales without discounting, turning the negative 8.4% first-half gross margin solidly positive and sharply reducing cash use. The bear case strengthens if low-to-mid single-digit 2026 volume growth slips, U.S. wind-down charges continue, or the early-2027 club loan cannot be refinanced. Management itself reports material uncertainty about continuing operations. Evidence of a double-digit gross margin, falling operating cash outflow, and refinancing without another large share issue would weaken the Overvalued view; failure on those tests would reinforce it.

AI: News

Half-Year Results DisappointSales stalled, underlying losses widened, and management lowered its growth target for the year.

On September 3, Polestar reported first-half revenue of $1.36 billion, down 4.4%, while adjusted gross margin fell to negative 8.5% from positive 1.4%. Adjusted operating cash earnings were a $521 million loss versus $302 million, and management cut 2026 volume guidance from low double-digit growth to low-to-mid single digits. The shares closed 27.5% lower that day. The timing suggests the update mattered, but does not prove it alone caused the move.

United States Sales EndingPolestar will stop selling new cars in America after clearing its existing inventory.

On June 25, Polestar said U.S. regulators would not authorize sales of model-year 2027 vehicles under the Connected Vehicle Rule. Although 94% of first-quarter retail sales came from outside America, the withdrawal removes a major future market and created inventory, guarantee, and restructuring costs. Polestar later estimated that U.S. operations increased first-half operating losses by $211 million, including about $130 million of decision-related adjustments, with further charges expected. Reuters reported a premarket decline above 6%, though timing alone cannot establish causation.

Debt Converted Into SharesSupporters reduced Polestar’s debt burden, but existing shareholders absorbed substantial dilution.

On July 1, Polestar said Geely and Volvo Cars had converted about $640 million of loans into equity since the year began. The remaining roughly $660 million Volvo loan now matures in December 2031, while a trade-finance facility increased to €450 million. These actions reduce creditor claims and postpone some repayment pressure. However, ordinary shares outstanding rose from about 2.78 billion at year-end to 4.93 billion by June after equity sales and conversions, significantly reducing each earlier share’s ownership percentage.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$3.06B	$2.03B	$2.37B	$2.44B	$1.34B	$610.2M
Gross profit	−$1.08B	−$876.2M	−$410.1M	$101.1M	$11.1M	$56.5M
Gross margin	−35.44%	−43.07%	−17.32%	4.14%	0.82%	9.26%
Research & development	$77.6M	$38.4M	$157.3M	$174.9M	$234.0M	$183.8M
Operating expenses	$902.6M	$937.1M	$1.06B	$1.29B	$960.1M	$440.5M
Operating income	−$1.99B	−$1.81B	−$1.47B	−$1.29B	−$960.6M	—
Operating margin	−64.96%	−89.14%	−62.05%	−52.71%	−71.50%	—
EBITDA	−$1.93B	−$1.76B	−$1.35B	−$1.15B	−$749.1M	—
EBITDA margin	−63.21%	−86.40%	−57.18%	−46.94%	−55.75%	—
Net income	−$2.36B	−$2.05B	−$1.18B	−$479.0M	−$969.8M	−$484.9M
Net profit margin	−77.08%	−100.77%	−49.91%	−19.63%	−72.18%	−79.45%
Basic EPSper basic share	-$25.50	-$0.97	-$0.56	-$0.24	-$0.51	-$0.29
Diluted EPSper diluted share	-$25.50	-$0.97	-$0.56	-$0.24	-$0.51	-$0.29

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of PSNY
Holder	Shares held
SUMITOMO MITSUI FINANCIAL GROUP, INC.	10.34M
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.	7.76M
NATIXIS	7.64M
MUFG BANK, LTD.	4.4M
CREDIT AGRICOLE S A	4.4M
BlackRock, Inc.	1.51M
STATE STREET CORP	453.53K
Swedbank AB	391.81K
DEUTSCHE BANK AG\	154.26K
UBS Group AG	153.05K
FIRST TRUST ADVISORS LP	132.2K
Swiss National Bank	130.49K
Saba Capital Management, L.P.	106.46K
GEODE CAPITAL MANAGEMENT, LLC	102.56K
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	84.15K
NORTHERN TRUST CORP	76.1K
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM	70.23K
Legal & General Group Plc	70.14K
KLP KAPITALFORVALTNING AS	57.43K
VANGUARD ASSET MANAGEMENT, Ltd	45.69K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$132.1K disclosed value

Sells (SEC code S)5$74.5K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4	Vahland WinfriedDirector	BuyClass A American Depositary Shares	6.7K	$19.72	$132.1K	32.0K
Apr 27, 2026Form 4	Simonsson Beatrice IngmarieChief Digital Officer	SellClass A American Depositary Shares	527	$17.68	$9.3K	612
Apr 27, 2026Form 4	Henricsson Nina JosefinChief Human Resources Officer	SellClass A American Depositary Shares	152	$17.68	$2.7K	197
Apr 27, 2026Form 4	Engstrom Jonas HakanChief Operating Officer	SellClass A American Depositary Shares	1.3K	$17.68	$22.1K	2.5K
Apr 27, 2026Form 4	Dicken Scott FraserChief Commercial Officer	SellClass A American Depositary Shares	895	$17.68	$15.8K	961