PSNY Stock Forecast & Price Target

Polestar Automotive's positive outlook is supported by the anticipation of improved delivery ramp-up and margin enhancement from its new production facility in South Korea, expected to commence operations in the second half of 2025. The company is strategically focused on growth initiatives for 2025, prioritizing cost reduction, process improvements, and securing new equity funding to bolster its financial position. Additionally, Polestar has significantly strengthened its liquidity by securing approximately $1 billion in new loan facilities and renewing $1.1 billion of existing facilities, which further enhances its capability to invest in growth and innovation.

Polestar Automotive Holding UK PLC exhibited significant financial difficulties in the second quarter and first half of 2025, reporting a gross margin of approximately -97.2% and -49.4%, substantially lower than previous estimates of around 6% and 6.4%. The firm's adjusted average selling prices (ASP) for fiscal years 2025 and 2026 have been revised downwards to $46,961 and $53,910, respectively, resulting in projected revenues of $3,178.3 million and $4,651.9 million, which reflect minimal upward adjustments from prior forecasts. Additionally, key risks such as potential tariffs, demand slowdown, supply chain disruptions, and high costs of goods sold contribute to a challenging operating environment, further exacerbating the negative outlook on Polestar’s financial performance.