PSNY Stock Forecast & Price Target

Polestar Automotive Holding UK PLC is strategically positioned for growth with its new production facility in South Korea expected to enhance delivery ramp-up and margin improvements by the second half of 2025. The company's focus on an active selling model, operational streamlining, and cost-cutting measures further supports its commitment to driving growth in the competitive electric vehicle market. Additionally, the securing of approximately $1 billion in new loan facilities, along with the renewal of $1.1 billion in existing facilities, underscores Polestar's solid financial foundation for future expansion and sustained operations.

Polestar Automotive exhibited a concerning negative gross margin of approximately 97.2% for Q2 2025 and 49.4% for the first half of the year, significantly below prior estimates, primarily due to a non-cash impairment expense. The company has revised its fiscal year 2025 and 2026 blended average selling price estimates downward to $46,961 and $53,910, respectively, leading to adjusted revenue expectations of $3,178.3 million and $4,651.9 million. Key risks impacting Polestar's outlook include potential tariffs, a slowdown in demand, ongoing supply chain disruptions, high cost of goods sold, and likely adverse changes in EV tax credit policies, which collectively diminish the growth potential of the company in a highly competitive market.