Polestar Automotive stock fell 29.4% on September 3 after the automaker reported H1 2026 earnings that fell far short of what investors expected. Sales stayed almost flat, losses declined year over year, and the company now faces a U.S. ban on its 2027 model-year cars.
Polestar Automotive Holding UK PLC (NASDAQ: PSNY) dropped 29.4% through 1:50 p.m. ET after reporting first-half 2026 results. Wall Street had already priced in a loss for the quarter, but investors were caught off guard by how deep the numbers ran.
Sales flat, losses still steep
Compared with H1 2025, Polestar sold 0.4% more electric cars while revenue fell 4.4% to $1.4 billion. Gross profit margin improved slightly but stayed negative, meaning the parts in every car it sold were worth more than the finished vehicle.
Selling, general, and administrative expenses held flat year over year, and lower research and development spending offset other rising costs. As a result, operating and net losses both declined even though operating margin also remained negative. Still, Polestar lost $842 million in H1 2026 — 29% less than a year earlier, but far from a turnaround.
Production plans scaled back
Polestar now expects low-to-mid single-digit volume growth this year, down from the double-digit increase it had planned, even as it rolls out four new models, including the Polestar 5 and the Polestar 4 SUV. According to the company: "the market environment is expected to remain highly competitive and volatile".
The stock's market cap has fallen to $1.7 billion, with shares now trading in an $8.03-to-$32.70 52-week range.
A U.S. market ban adds pressure
Beyond the earnings miss, Polestar must contend with a U.S. Department of Commerce Bureau of Industry and Security ban on selling 2027 model-year Polestars in America, starting next year. Combined with slowing production plans and persistent losses, the outlook for the automaker has turned considerably harder.
Source: The Motley Fool
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