Polestar’s Race Against Time to Maintain Nasdaq Listing

The Swedish electric vehicle manufacturer Polestar finds itself in a critical battle for its stock market survival. Despite posting encouraging delivery growth, the company faces an existential threat: potential delisting from the Nasdaq exchange if it cannot reverse its declining share price.

A pressing challenge now dominates Polestar's corporate agenda. In late October, the automaker received formal notification that its stock had fallen below the critical $1 threshold, violating Nasdaq listing requirements. This development triggers a countdown toward a potential delisting.

The company has been granted until April 2026 to rectify this situation. To maintain its listing, Polestar must sustain a share price above $1 for ten consecutive trading sessions. Failure to achieve this would result in removal from the exchange—an outcome that would likely damage corporate credibility and alienate institutional investors. With shares currently trading at approximately €0.69, the path to compliance appears challenging.

Delivery Growth Masks Financial Strain

Recent operational performance presents a contrasting picture to the stock market struggles. Third-quarter delivery figures reached 14,192 vehicles, representing a 13% increase compared to the same period last year.

Should investors sell immediately? Or is it worth buying Polestar Auto.adr/a?

Year-to-date performance shows even stronger momentum, with sales already matching Polestar's entire 2024 volume—translating to substantial 36% growth. However, these expanding delivery numbers haven't translated to financial stability. The company continues to report significant losses while navigating an increasingly competitive electric vehicle sector where profitability remains elusive for many manufacturers.

The Investor Confidence Dilemma

The divergence between operational metrics and market performance creates a complex challenge. While vehicle deliveries climb steadily, shareholder confidence has deteriorated, reflected in the depressed equity valuation.

This situation raises fundamental questions about Polestar's trajectory. Can the automaker leverage its sales growth to address both its financial deficits and stock price concerns simultaneously? Is there sufficient time to engineer a turnaround that satisfies both operational and regulatory requirements?

The coming months will determine whether Polestar can align its business recovery with exchange compliance, or whether the Nasdaq deadline becomes an insurmountable obstacle for the electric vehicle maker.