PSNY Stock Forecast & Price Target

Polestar Automotive Holding UK PLC is actively enhancing its operational capabilities with the anticipated completion of its new production facility in South Korea by the second half of 2025, which is expected to boost delivery rates and improve profit margins. The company's strategic focus for 2025 includes driving growth through an active selling model, streamlining operations, and reducing costs, positioning it for better financial performance. Moreover, Polestar has strengthened its financial stability by securing approximately $1 billion in new loan facilities, alongside the renewal of existing facilities totaling around $1.1 billion, which provides a solid foundation for future investments and growth initiatives.

Polestar Automotive recorded a significantly negative gross margin of approximately (97.2%) in the second quarter and (49.4%) in the first half of 2025, which fell far below initial estimates of 6% for both periods and was adversely affected by a non-cash impairment expense. Additionally, projections for the average selling price (ASP) of vehicles have been revised downward for fiscal years 2025 and 2026, now estimated at $46,961 and $53,910, leading to adjusted revenue forecasts of $3,178.3 million and $4,651.9 million, respectively. Key risks contributing to the negative outlook include potential tariffs, a slowdown in demand, supply chain disruptions, high cost of goods sold, increasing market competition, and uncertainty surrounding the future of EV tax credits.