Polestar received a Nasdaq notice on October 31, 2025 for failing to meet the exchange’s minimum bid price rule, which requires the closing bid price of its American Depositary Shares to be at least $1.00.
Under Nasdaq Listing Rule 5450(a)(1), the company has 180 days, until April 29, 2026, to restore the bid price to $1.00 or higher; failure to do so could result in delisting and a shift to an over‑the‑counter market, limiting liquidity and capital‑raising ability.
Polestar’s financial performance has been volatile. In the first half of 2025 the company reported revenue growth of 56% to $1.4 billion, but also a negative reported gross margin of –49.4% and an adjusted gross margin of 1.4%. In 2024 revenue fell 14.1% to $2.03 billion and losses increased 73.4%. A significant impairment charge for Polestar 3 assets in Q2 2025, rising production costs, new tariffs on parts for U.S.‑assembled vehicles, and pricing pressure in the electric‑vehicle market have all contributed to margin compression.
Management said it will explore options such as share buy‑backs, capital raising, and other measures to lift the bid price. The company secured more than $900 million in financing facilities in Q1 2025, received a $200 million equity investment from PSD Investment Limited in June 2025, and obtained a $950 million three‑year loan facility in February 2024. Polestar aims for cash‑flow break‑even by the end of 2025.
Polestar previously faced a similar minimum bid price notice in July 2024 and regained compliance by September 2024. The recurrence of this issue underscores ongoing financial pressures and the importance of maintaining listing standards.
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