- The carmaker has delayed the release of its 2023 annual report and Q4 2023 report.
- Despite once having a value of $21 billion, Polestar now has a market capitalization of just $1.65 billion.
- The company has ramped up advertising spending in Q2.
Polestar’s stock recently plunged to an all-time low of 73 cents, putting its Nasdaq listing in jeopardy if it does not reverse its fortunes.
The electric car manufacturer went public through a reverse merger with a special purpose acquisition company (SPAC) in 2022 and, at one stage, was valued at $21 billion. However, like many other EV companies listed on the Nasdaq or NYSE in recent years, its stock has performed poorly, losing roughly 95% of its value. The firm now has a market capitalization of just $1.65 billion.
Read: Polestar Faces Nasdaq Delisting Threat For Delayed 2023 Report
Polestar’s stock dipped below $1 for the first time on May 21, shortly after it revealed it was delaying the release of its 2023 annual report and its Q4 2023 report. Polestar says it’s delayed the release as it needs to finalize statements regarding accounting misstatements made in 2021 and 2022, which need to be rectified in the 2023 report. The company adds that these changes will decrease its net loss by less than 5% for 2021 and increase it by less than 5% for 2022.
Due to the delayed release of the financial reports, Polestar received a deficiency notice from the Nasdaq, meaning it’s not in compliance with stock exchange regulations. It has 60 days from the date of the notice to submit a plan of compliance to the Nasdaq. If this plan is accepted, an additional 180 calendar days may be granted to regain compliance.
Polestar’s deliveries through the first quarter slipped 53% from last year, and new registrations have fallen by 70%. Polestar North America boss Gregor Hembrough has blamed this on high interest rates and a move away from fleet sales.
The carmaker is trying to reverse its fortunes. Auto News says Polestar recently launched a pricey second-quarter advertising campaign at levels not seen since its $6.5 million Super Bowl commercial from 2022. It also offers compelling leasing deals, including a $299/month lease on the Long Range Polestar 2 that’s been extended into June.
