Polestar Fully Compliant With Nasdaq Listing Rules

Rhea-AI Summary

Polestar (Nasdaq: PSNY) has regained compliance with Nasdaq's Listing Rule 5450(a)(1) after its American Depositary Shares (ADSs) closed above $1.00 for at least ten consecutive business days. This follows a July 5, 2024 notification from Nasdaq that Polestar was not in compliance with the minimum bid price requirement. Per Ansgar, Polestar CFO, stated that the company is now fully compliant with Nasdaq listing rules, allowing them to focus on business execution and ramping up deliveries of their two performance SUVs.

Polestar, a Swedish electric performance car brand, aims to accelerate the shift to sustainable mobility. The company plans to have a lineup of five performance EVs by 2026, including the Polestar 2, 3, 4, 5, and 6. Polestar is also working on the Polestar 0 project, which aims to create a truly climate-neutral production car by 2030.

Positive

• Regained compliance with Nasdaq's Listing Rule 5450(a)(1)
• Cleared remaining deficiency on low bid price
• Fully compliant with Nasdaq listing rules
• Plans to have a lineup of five performance EVs by 2026
• Launching Polestar 4 in phases through 2023 and into 2024

Negative

• Previously faced non-compliance with Nasdaq's minimum bid price requirement

Insights

Financial Analyst

Polestar's regaining of Nasdaq compliance is a positive development for the company's market standing. This news alleviates immediate concerns about potential delisting, which could have severely impacted investor confidence and the company's ability to raise capital. However, it's important to note that the stock price's recovery above $1 is just meeting the minimum requirement, not necessarily indicating strong financial performance.

The company's focus on ramping up deliveries of its SUV models could potentially improve its financial position. Yet, investors should closely monitor Polestar's upcoming financial reports to assess whether this compliance is sustainable and if the company can translate increased deliveries into improved profitability. The electric vehicle market remains highly competitive and Polestar's ability to differentiate itself and achieve economies of scale will be critical for long-term success.

Market Research Analyst

Polestar's compliance with Nasdaq rules signals a stabilization in investor perception, which is important in the volatile EV market. The company's planned expansion to a five-vehicle lineup by 2026 shows ambition, but also presents significant operational and financial challenges. The EV market is becoming increasingly crowded, with established automakers and new entrants vying for market share.

Polestar's focus on performance EVs and sustainability could be a differentiator, particularly its Polestar 0 project aiming for a climate-neutral production car by 2030. This aligns with growing consumer and regulatory emphasis on sustainability. However, the company needs to balance these long-term goals with short-term financial performance to maintain investor confidence. The success of the Polestar 3 and 4 SUV models in the highly competitive luxury EV segment will be important indicators of the company's market traction and financial trajectory.

Tech Expert

Polestar's compliance with Nasdaq rules is a positive short-term development, but the company faces significant technological challenges in the rapidly evolving EV sector. The planned expansion to five models by 2026 is ambitious and will require substantial R&D investment to remain competitive in areas like battery technology, autonomous driving and connected car features.

The Polestar 0 project, aiming for a climate-neutral production car by 2030, is technologically ambitious and could position the company as an innovator if successful. However, achieving this goal while maintaining performance and cost-effectiveness will be challenging. Investors should monitor Polestar's technological advancements, particularly in battery efficiency and sustainable manufacturing processes, as these will be key differentiators in the increasingly crowded EV market. The company's ability to innovate while scaling production will be critical for long-term success and maintaining its market position.

GOTHENBURG, Sweden--(BUSINESS WIRE)-- Polestar (Nasdaq: PSNY) has received notice that with the closing bid price of the Company’s American Depositary Shares (“ADSs”) exceeding $1.00 for at least ten consecutive business days, Polestar has regained compliance with Nasdaq’s Listing Rule 5450(a)(1). As previously announced, Polestar was notified by Nasdaq on July 5, 2024, that it was not in compliance with the minimum bid price requirement as the Company’s ADSs had closed below $1.00 for 30 consecutive trading days.

(Photo: Business Wire)

Per Ansgar, Polestar CFO, says: “Following the publication of our Annual Report on form 20-F in mid-August we regained reporting compliance. Clearing the remaining deficiency on the low bid price makes Polestar fully compliant with Nasdaq listing rules, and enables us to focus on business execution, as we ramp up deliveries of our two performance SUVs.”

About Polestar

Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand determined to improve society by using design and technology to accelerate the shift to sustainable mobility. Headquartered in Gothenburg, Sweden, its cars are available online in 27 markets globally across North America, Europe and Asia Pacific.

Polestar plans to have a line-up of five performance EVs by 2026. Polestar 2, the electric performance fastback, launched in 2019. Polestar 3, the SUV for the electric age, launched in late 2022. Polestar 4, the SUV coupé transformed, is launching in phases through 2023 and into 2024. Polestar 5, an electric four-door GT and Polestar 6, an electric roadster, are coming soon.

The Polestar 0 project supports the company’s ambitious goal of creating a truly climate-neutral production car by 2030. The research initiative also aims to create a sense of urgency to act on the climate crisis, by challenging employees, suppliers and the wider automotive industry, to drive towards zero.

Forward Looking Statements

This press release contains statements that are not historical facts, but rather forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Polestar or its management believes or anticipates may occur in the future. All forward-looking statements are based upon, as applicable, our current expectations, various assumptions and data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including those risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Polestar’s Form 20-F, and other documents filed, or to be filed, with the U.S. Securities and Exchange Commission by Polestar. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any such statements in light of new information or future events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917373307/en/

Bojana Flint

Head of IR

Bojana.flint@polestar.com

Theo Kjellberg

Head of Corporate Communications

theo.kjellberg@polestar.com

Source: Polestar

FAQ

What was Polestar's (PSNY) recent compliance issue with Nasdaq?

Polestar (PSNY) was notified on July 5, 2024, that it was not in compliance with Nasdaq's minimum bid price requirement as its ADSs had closed below $1.00 for 30 consecutive trading days.

How did Polestar (PSNY) regain compliance with Nasdaq's listing rules?

Polestar (PSNY) regained compliance with Nasdaq's Listing Rule 5450(a)(1) after its American Depositary Shares (ADSs) closed above $1.00 for at least ten consecutive business days.

What are Polestar's (PSNY) plans for future electric vehicle models?

Polestar (PSNY) plans to have a lineup of five performance EVs by 2026, including the Polestar 2, 3, 4, 5, and 6. The Polestar 4 is launching in phases through 2023 and into 2024.

What is the Polestar 0 project mentioned in the press release?

The Polestar 0 project is an initiative aimed at creating a truly climate-neutral production car by 2030. It also seeks to create a sense of urgency to act on the climate crisis by challenging employees, suppliers, and the wider automotive industry.