Polestar is still deeply in debt. But in just a few days, the stock has skyrocketed and is now worth more than $1 apiece. A decisive value.
Polestar may have averted the biggest crisis in the brand's very short life. Until this week, the Geely-owned brand was about to go off the stock exchange in New York.
The threat hung over the heads of the Polestar management with the deadline of January 2, 2025. If the price is not above one dollar by that time – and for 30 consecutive days – the brand will go off the stock market.
But in the last month alone, Polestar's value on the stock exchange has grown by 16 percent and thus exceeded 1 dollar. From the absolute low point in August, when Polestar had shed more than 90 percent of its original value, the course has reversed by more than 63 percent.
Technically, a delisting, as it is called when a company is thrown off the stock exchange, is still an option. Polestar is dependent on the exchange rate staying above 1 dollar from now on.
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At the time of this article's publication, the stock, also known as 'PSNY', is just over a dollar. The recovery in the share price cannot be clearly explained.
But perhaps investors have welcomed the fact that Volvo has reduced its stake in Polestar from 49 to just 18 percent. The price has also continued to rise, even though a major Swedish bank forcibly sold millions of Polestar shares last week.
Another thing is that, after threats of a delisting, the brand has actually succeeded in handing over accounts to the American authorities, which regulate the stock exchange. This happened after several significant delays.
However, the brand's problems do not end here. Like Volvo, which has now become a sister brand, Polestar's cars will be hit with a 100 percent penalty tariff from October 1. Read more about it here .
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