Polestar's Q3: Losses Up, Stock Down, But Hey, at Least They're Still on Nasdaq... Maybe!

TL;DR: Polestar’s Q3 report card just came in, and let’s just say it needs more than a gold star. The EV maker’s losses widened, and to keep its spot on the Nasdaq, they're planning a reverse stock split. Talk about a Hail Mary pass!

Meta: Polestar reported a wider Q3 loss and plans a reverse stock split to maintain its Nasdaq listing, facing stiff market pressures and a 93% stock value drop since its 2022 debut.

Alright, settle down, settle down! Polestar, the sleek Swedish EV brand, just dropped its third-quarter financial results, and if you’re an investor, you might need a strong cup of coffee – or something stronger. They posted a wider loss, and their stock, which has already shed more than 93% of its value since its 2022 debut, took another hit, dropping 17% in early trading. That's a bigger fall than me trying to do the worm at a wedding.

Now, here’s the kicker: they're planning a reverse stock split just to keep their listing on the Nasdaq. If you don’t know what that means, imagine having ten tiny pieces of pie, and you combine them into one slightly larger, but still small, piece. You still got the same amount of pie, but it looks better on the plate. It's a move usually reserved for companies trying to avoid getting kicked off the big board. Jean-Francois Mady, Polestar’s CFO, was pretty blunt, admitting the results were 'clearly disappointing' due to 'pricing pressure' and 'higher cost of production due to the duties.' Sounds like the EV market is a tough neighborhood to do business in right now.

Revenue Up, Profits Down: The EV Paradox

Despite the doom and gloom, it wasn’t all bad news. Polestar actually delivered more cars – an estimated 14,192 vehicles, a 13% jump year-over-year. Revenue also rose a respectable 36% to $748 million, thanks to the newer Polestar 3 and Polestar 4 SUVs, and even a little bump from carbon credit sales. But here’s the paradox: more sales, more revenue, but deeper losses. They reported a net loss of $365 million, up from $323 million a year ago. That’s like making more money but somehow having less in your pocket at the end of the month. The culprit? Higher gross losses and, get this, costs linked to residual value guarantees in North America. When used EV prices slide, Polestar’s on the hook. It’s a nasty little trapdoor.

Over the first nine months of 2025, they moved 44,482 vehicles, a 36.5% increase. Revenue was up nearly 49% to $2.17 billion. So the cars are moving, but the profit margins are tighter than my old jeans after Thanksgiving dinner. They're still leaning on Geely Holding Group for support and looking for more cash. Sounds like they’re trying to keep a boat afloat with a thimble.

Reverse Split: A Familiar Playbook?

This reverse stock split plan isn’t exactly a new trick. CEO Michael Lohscheller actually tried a similar maneuver back when he was at Nikola – remember them? The company that had its own little financial 'oops' moment shortly after. Let’s hope Polestar’s story has a happier ending. The pressure from Nasdaq has been mounting, with their share price lingering below a dollar for almost two years. A reverse split is like a magic trick to make the share price appear higher, but the underlying value is still the same. It's a way to stay in the game, buy some time, and hopefully, turn things around.

This all speaks to the broader challenges in the EV market right now. Intense competition, price wars, and the sheer cost of scaling production are making it tough even for established brands, let alone a niche player like Polestar. They've got style, they've got good reviews, but turning a profit in this environment? That’s the real challenge.

What’s Next

Polestar needs to execute this reverse stock split smoothly, keep investors calm, and, most importantly, start narrowing those losses. The Polestar 3 and 4 SUVs are key to their future, but they need to find a way to make them profitable. Can they cut costs, boost demand, and navigate the treacherous waters of tariffs and residual values? This next year will be critical to see if they can truly redefine their financial narrative. Or, if they'll end up being another cautionary tale in the wild, wild west of EVs.

So, Polestar, you got your work cut out for you. Get that stock up, get those profits flowing, and maybe, just maybe, you'll still be standing when the music stops. Good luck, you're gonna need it! Ha!