Polestar has received a warning from the Nasdaq stock exchange that it risks being delisted after its shares fell below the minimum bid price required for continued listing.
The Swedish electric vehicle brand, backed by Volvo Cars and China’s Zhejiang Geely Holding Group, confirmed on Friday (October 31) that it had received a formal notice from Nasdaq advising it was no longer in compliance with the exchange’s US$1.00 minimum bid price requirement.
Under Nasdaq rules, Polestar has 180 calendar days – until April 29, 2026 – to bring its American depository shares back above US$1.00 for at least 10 consecutive business days. If it fails to do so, the company could receive one further 180-day extension before being removed from the exchange.
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Polestar said the notice “has no immediate impact” on its Nasdaq listing and that trading in its shares will continue as normal while it works to regain compliance. At the time of the notice, Polestar’s stock closed at US$0.84, having fallen about 20 per cent so far this year following a 50 per cent drop in 2024.
It’s the second time the company has been put on notice by the US exchange, after a similar compliance issue in 2024 linked to a delay in filing its annual results.
Polestar’s shares have slumped amid continued losses, cash-flow concerns, and intensifying competition in the global EV market. The brand, which floated on Nasdaq in 2022 via an SPAC merger, has struggled to maintain investor confidence despite expanding its model range from the Polestar 2 sedan to the new Polestar 3 large SUV and Polestar 4 mid-size SUV.
Polestar sold just 44,851cars globally in 2024, which was a 15 per cent decrease from 2023 (52,796). To put that in context, Tesla sold more cars just in Australia last year than Polestar sold globally.
Industry analysts have pointed to margin pressure and a slowdown in EV sales growth globally, with discounts and leasing incentives weighing on profitability. Consumers have seemingly also struggled to accept or care for the brand’s deep focus on its apparent environmental credentials.
For Australian buyers, Polestar’s financial troubles may not translate to immediate product disruption, but they do raise questions about the long-term strength and viability of the brand. So far in 2025, to the end of September, Polestar has sold just 1867 vehicles in Australia.