PSNY Stock Forecast & Price Target

Polestar Automotive is demonstrating a robust growth trajectory with a new production facility in South Korea expected to significantly enhance delivery volumes and improve profit margins by 2H25. The company aims to streamline operations and cut costs while also securing new equity funding to support its active selling model. Furthermore, Polestar's successful acquisition of approximately $1 billion in new loan facilities, along with the renewal of $1.1 billion in existing facilities, positions the company favorably in terms of financial liquidity to support its expansion plans.

Polestar Automotive has reported an alarming negative gross margin of approximately 97.2% for Q2 2025 and 49.4% for the first half of 2025, significantly underperforming the prior estimates of 6% for both periods, primarily due to a non-cash impairment expense. The company has also revised its fiscal year 2025 and 2026 blended average selling price (ASP) estimates downward to $46,961 and $53,910, respectively, impacting projected revenues to $3.18 billion and $4.65 billion, which reflect only minor adjustments from previous predictions. Additionally, Polestar faces numerous risks, including tariffs, a potential slowdown in consumer demand, ongoing supply chain disruptions, and a highly competitive market landscape, all of which contribute to the negative outlook on the stock.