Polestar Automotive Holding shares are falling after catching a downgrade to Sell. There just isn’t enough volume in the upper end of the electric-vehicle market.
Polestar stock is down 1.3% in premarket trading at $3.09 a share, while S&P 500 and Nasdaq Composite futures are off 0.4% and 0.7%, respectively. Polestar was partially spun off by Chinese company Geely, also the parent of Volvo. Geely continues to own a large stake in Polestar. Volvo sells EVs such as the XC40 and C40 that overlap in size with the new Polestar 3. The Polestar, however, is more expensive for a higher-end buyer.
Newsletter Sign-up Polestar’s vehicles are less expensive than Lucid sedans that can run north of $100,000 each. Polestar sold 15,800 units in the second quarter, up from about 12,000 in the year-ago quarter. Still, quarterly sales peaked for the company in the fourth quarter at about 22,000 units.