Polestar (NasdaqGM:PSNY): Assessing Valuation After Nasdaq Minimum Bid Price Notice

Polestar Automotive Holding UK (NasdaqGM:PSNY) has received a formal notice from Nasdaq after its share price slipped below the $1.00 minimum bid requirement. The notice gives the company a specific window to regain compliance and maintain its listing.

See our latest analysis for Polestar Automotive Holding UK.

The recent notification from Nasdaq has put the spotlight back on Polestar’s challenging run, with the share price closing at $0.8003 after a steep 1-year total shareholder return of -31.89% and a significant 3-year total return plunge of -81.3%. While today’s 12.12% jump hints at short-term buying interest, the broader momentum has clearly faded. This reflects shifting risk assessments and ongoing uncertainty around future growth and compliance.

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But after such a sharp decline, is Polestar trading at an attractive discount that could reward patient investors? Or does the current price already reflect all the risks and fading growth prospects ahead?

Most Popular Narrative: 20% Undervalued

The narrative places Polestar's fair value at $1.00, noticeably above the last close of $0.80. This margin reflects heightened expectations for the company’s ability to boost profitability and move to a stronger earnings multiple in the coming years.

The company's strategy of expanding its retail footprint and launching new high-end models (like Polestar 5) requires significant ongoing investment. However, this may not yield corresponding volume growth or margin improvement if broader economic weakness or EV adoption slowdowns dampen demand, adding risk to long-term earnings targets.

Read the complete narrative.

The narrative’s numbers rely on several bold projections. Want to see exactly what kind of revenue jump, profit transformation, and future valuation multiple shape this price target? Unlock the full reasoning and see which assumptions are driving the fair value above today’s market price.

Result: Fair Value of $1.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cash burn and fierce competition from better-funded EV rivals could quickly derail Polestar’s turnaround hopes.

Find out about the key risks to this Polestar Automotive Holding UK narrative.

Build Your Own Polestar Automotive Holding UK Narrative

If you have a different view on Polestar or want to dig into the numbers yourself, you can craft your own narrative in just a few minutes, Do it your way

A great starting point for your Polestar Automotive Holding UK research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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