PSNY Stock Forecast & Price Target

Polestar Automotive has a positive outlook supported by significant investments in its new production facility in South Korea, expected to enhance delivery ramp-up and improve profit margins by the second half of 2025. The company has outlined strategic priorities for 2025, focusing on driving growth, streamlining operations, and securing new equity funding, all of which are critical for long-term sustainability and market competitiveness. Furthermore, management's success in securing approximately $1 billion in new loan facilities, along with the renewal of around $1.1 billion in existing facilities, provides a robust financial foundation to support its strategic initiatives and capital expenditures.

Polestar Automotive Holding UK PLC reported a significantly negative gross margin of approximately (97.2%)/(49.4%) for the second quarter and first half of 2025, starkly diverging from earlier estimates of around 6%/6.4%, largely due to a non-cash impairment expense. Additionally, revenue forecasts for FY25 and FY26 have been downgraded to $3,178.3 million and $4,651.9 million, respectively, alongside a substantial decrease in gross margin estimates to (21%)/5%. The company faces a multitude of risks, including tariffs, a slowdown in consumer demand, persistent supply chain disruptions, and increased cost pressures, all of which exacerbate the challenges in the highly competitive electric vehicle market.