Polestar reported its latest financial results on Wednesday, posting a wider third-quarter loss and confirming plans for a reverse stock split as the company works to avoid being delisted from the Nasdaq. The Swedish automaker’s challenges—ranging from falling U.S. demand to pricing pressure and tariff-related costs—continue to overshadow growing sales and higher revenue.
Shares dropped as much as 17% in early trading following the announcement, extending a decline that has seen the stock lose more than 93% of its value since its 2022 debut.
Revenue Climbs, but Profitability Moves in the Opposite Direction
For the July–September period, Polestar delivered an estimated 14,192 vehicles, a 13% year-over-year increase. Revenue rose 36% to US$748 million, supported by higher volumes of its newer Polestar 3 and Polestar 4 SUVs and US$33 million in carbon credit sales.
Despite that growth, Polestar fell well short of Wall Street expectations, missing the consensus revenue estimate by roughly US$102 million.
The company reported a net loss of US$365 million for Q3—deeper than the US$323 million loss a year ago—citing higher gross losses, costs linked to residual value guarantees in North America, and reduced operating income. These guarantees, common in EV leases, require Polestar to cover the difference when resale values fall short of expectations, a growing issue as used EV prices continue to slide.
Polestar’s CFO Jean-Francois Mady acknowledged the challenges during a call with analysts.
“The result of Q3 has been clearly disappointing for us… we are continuing suffering pricing pressure on our vehicles in addition to having a higher cost of production due to the duties,” he said.
Nine-Month Results Show Stronger Sales, Higher Losses
Across the first nine months of 2025, Polestar recorded 44,482 retail sales, up 36.5% year-over-year, and generated US$2.17 billion in revenue, an increase of nearly 49%. But profitability continues to lag, driven in part by a US$739 million non-cash impairment related to the Polestar 3 earlier this year.
The company remains supported by Geely Holding Group and says it is still pursuing additional equity and debt financing.
Reverse Stock Split Planned as Nasdaq Pressure Mounts
Polestar’s share price has been trading under US$1 for the better part of two years, prompting a formal delisting notice from Nasdaq. The company now plans to move ahead with a reverse split to mechanically lift the share price and regain compliance. Details are expected soon, with management set to brief investors during a scheduled conference call.
CEO Michael Lohscheller previously attempted a similar maneuver during his tenure at Nikola, shortly before that company’s own financial collapse.
