PSNY Stock Forecast & Price Target

Polestar Automotive Holding UK PLC is strategically positioned for growth with the anticipation of its new production facility in South Korea becoming operational in the second half of 2025, which is expected to enhance delivery ramp-up and improve profit margins. The company is focused on executing an active selling model alongside streamlining operations and cost-cutting measures, which will support its overall financial health and operational efficiency. Furthermore, Polestar has successfully secured approximately $1 billion in new 12-month term loan facilities, along with the renewal of around $1.1 billion in existing facilities, bolstering its financial foundation for future initiatives.

Polestar Automotive reported a significantly negative gross margin of approximately -97.2% for the second quarter and -49.4% for the first half of the fiscal year, falling well below previous estimates of around 6%. The company's blended average selling price (ASP) estimates were reduced to $46,961 for FY25 and $53,910 for FY26, leading to projected revenues of $3,178.3 million and $4,651.9 million, respectively, which also reflect downward adjustments. Key risks influencing this negative outlook include high cost of goods sold, potential demand slowdown, supply chain challenges, competitive market dynamics, and the anticipated removal of EV tax credits.