Dive Brief:
- Polestar received a notice of noncompliance with Nasdaq’s $1 minimum bid price requirement, the electric vehicle maker disclosed in a press release last week.
- The company has 180 days, or until Jan. 2, 2025, to regain compliance by having a closing bid price that meets or exceeds the $1 minimum for at least 10 consecutive business days.
- “With the increasing business momentum, growing model line-up and diversified manufacturing footprint, Polestar continues to target cash flow break-even towards the end of 2025 and expects that this will be reflected in the Company’s valuation,” the automaker said in the release.
Dive Insight:
The Nasdaq warning comes just weeks after Volvo Cars shed a majority of its stake in Polestar. The legacy automaker now owns just 18% of the EV brand, down from a 48% stake in February.
“As we have significant operational collaborations with Polestar and a financial relationship, it is logical for us to retain influence through a smaller 18.0 percent stake in Polestar,” Jim Rowan, President and CEO of Volvo Cars, said in an April press release. “That said, Volvo Cars will not provide further funding to Polestar.”
Polestar is seeing increased sales this year, but its June 28 preliminary 2023 results showed the company’s revenue was down by $67.3 million, or 3%, year over year.
The automaker has delivered 20,200 vehicles year to date, according to a July 2 press release, with Q2 deliveries up 80% over Q1.
In the release, Polestar CEO Thomas Ingenlath said production of the Polestar 3 SUV in South Carolina is set to start at end of the summer and and production of the Polestar 4 SUV coupe will begin in South Korea in the second half of 2025.
"We expect strong revenue improvement in the second quarter and are confident about our business performance in the latter part of the year,” Ingenlathsaid. “Looking further ahead, our model expansion and increased market presence – with seven new market launches to come in 2025 – will be key growth drivers for us.”
Polestar’s stock opened at 94 cents and closed at $1.01 on Friday.
