Swedish electric carmaker Polestar (Nasdaq: PSNY) has once again landed in trouble with the Nasdaq Stock Market, after receiving a fresh notice of non-compliance on October 31, 2025. The exchange cited the company’s failure to meet Listing Rule 5450(a)(1), which requires listed securities to maintain a minimum bid price of $1 per share.
This notice puts Polestar on a 180-day clock—until April 29, 2026—to fix the issue and regain compliance. If it fails, the company risks being delisted to an over-the-counter market, a move that could significantly impact investor confidence, liquidity, and its ability to raise capital.
The latest blow comes as Polestar’s stock continues to slide, trading around $0.26, reflecting deepening investor concerns about its financial health and the broader challenges facing the electric vehicle (EV) sector.
A Recurring Struggle with Compliance
This isn’t Polestar’s first run-in with Nasdaq’s compliance rules. In July 2024, the company was hit with a similar warning after its shares stayed below $1 for 30 consecutive trading days. It managed to bounce back in September 2024, closing above the threshold for ten straight sessions and temporarily resolving the issue.
However, that recovery was short-lived. Polestar’s share price has since dropped sharply, weighed down by heavy losses, delayed filings, and accounting errors that forced corrections in previous financial reports. In mid-2024, Nasdaq had also flagged the automaker for late financial disclosures, though compliance was restored by August.
Together, these repeated lapses paint a picture of instability—both operationally and financially—within a company that was once seen as a promising challenger in the premium EV market.
Market Pressure and Investor Jitters
Polestar’s struggles highlight the steep uphill climb for newer EV manufacturers in a sector now dominated by Tesla, BYD, and traditional automakers like Volkswagen, BMW, and Hyundai. Analysts say aggressive pricing wars and slowing EV demand have left smaller companies vulnerable, especially those still chasing profitability.
Adding to the challenge, Polestar continues to face intense scrutiny from investors wary of SPAC-listed EV startups, many of which have struggled post-listing. The company’s current predicament has further deepened skepticism toward such high-growth, high-risk ventures on U.S. exchanges.
To meet Nasdaq’s compliance requirement, Polestar must push its share price back above $1 for at least ten consecutive trading days before the April deadline. A reverse stock split—which consolidates shares to boost the price—is one possible move, though it often signals weakness to the market.
On the business front, the company’s focus remains on expanding its lineup, with upcoming launches like the Polestar 5 and Polestar 7, alongside ongoing deliveries of Polestar 3 and 4. Polestar has also set targets for positive cash flow by late 2025 and profitability by 2027, but with the stock under pressure and debt levels high, investors remain cautious.
Whether Polestar can steer out of this storm will depend on its ability to deliver steady performance, maintain investor trust, and restore financial stability before time runs out.
