Polestar's Stock Plummets, Faces Listing Jeopardy
TapTechNews June 2nd news, the stock price of Swedish electric vehicle manufacturer Polestar has recently plummeted to a historical new low of 73 cents. If the situation doesn't improve, its listing status on Nasdaq may be in jeopardy.
This electric vehicle manufacturer went public in 2022 through a reverse merger with a special purpose acquisition company (SPAC), and its valuation once soared to as high as $21 billion. However, like many other electric vehicle companies listed on Nasdaq or NYSE in recent years, Polestar's stock price has performed poorly and has dropped by approximately 95%. Currently, the company's market capitalization is only $1.65 billion (TapTechNews note: about 11.979 billion yuan currently).
On May 21st, after Polestar announced the delay in the release of its 2023 annual report and the fourth quarter financial report of 2023, its share price fell below $1 for the first time. Polestar said that due to the need to complete the correction report of accounting errors in 2021 and 2022, the financial report release was postponed. The company added that these changes will reduce the net loss in 2021 by less than 5% and increase the net loss in 2022 by less than 5%.
Due to the delay in the release of the financial report, Polestar has received a deficiency notice from Nasdaq, which means it doesn't meet the regulations of the stock exchange. Polestar needs to submit a compliance plan to Nasdaq within 60 days after receiving the notice, and if the plan is accepted, the company will get an additional 180 natural days to restore compliance.
The delivery volume of Polestar in the first quarter decreased by 53% year-on-year, and the new car registration volume decreased by 70%. Gregor Hembrough, the head of Polestar's North American business, attributed this to high interest rates and the abandonment of fleet sale.
Polestar is striving to reverse the downturn. According to AutoNews, the company recently launched an expensive second-quarter advertising campaign, which is comparable to the $6.5 million Super Bowl advertisement in 2022. The company also offers very attractive leasing deals, such as reducing the leasing cost of the longer-range Polestar 2 to $299 per month, and this preferential activity has been extended to June.