- Nasdaq has given Polestar 180 days to regain compliance and lift its value to at least $1 per share.
- Polestar believes new models and a diversified manufacturing footprint will aid its valuation.
- Reports from China claim that Polestar could slash 30% of its local workforce.
Polestar is at risk of being delisted from the Nasdaq because its share price has slipped below $1, and if reports of mass layoffs in China are accurate, things may only get more precarious for the EV maker.
The Nasdaq recently notified Polestar that due to its shares trading below $1, it no longer complies with listing rules. The marque has 180 days to regain compliance, or until January 2, 2025. To do so, its shares must meet or exceed $1 for at least ten consecutive business days. If Polestar fails to meet this target, it may be afforded an additional 180 days to regain compliance.
Read: Polestar’s Stock Has Lost 95% Of Its Value Since 2022 IPO
At the time of writing, Polestar’s shares were trading at around 92 cents and had been consistently trading below $1 since the third week of May, when its stock crashed to a historic low of just 73 cents. To put that into perspective, Polestar’s shares peaked at over $13 in late 2021, and it once had a market capitalization of $21 billion. It now has a market cap of just $1.94 billion.
Polestar appears confident in its prospects. Thanks to “increasing business momentum, growing model line-up, and diversified manufacturing footprint,” it expects to reach a cash flow break-even point towards the end of 2025 and believes this will help its valuation.
News of the brand receiving a deficiency notice from the Nasdaq comes shortly after reports surfaced out of China suggesting Polestar plans to lay off up to 30% of its local workforce by the end of September. Tech Node reports that production has been suspended at a factory in Chengdu, and Polestar is downsizing office space in Shanghai.
As in other markets, Polestar sales in China have been struggling. Through the first months of this year, it sold fewer than 1,000 vehicles in the world’s largest car market. Globally, Polestar sales fell 40% in the first quarter of the year, slipping to just 7,200 units compared to the 12,076 sold over the same period last year.
