Polestar stock unchanged as Cantor Fitzgerald reiterates neutral rating

Published 23/06/2025, 12:58
Polestar stock unchanged as Cantor Fitzgerald reiterates neutral rating

Investing.com - Cantor Fitzgerald maintained its neutral rating on Polestar Automotive Holding Uk Plc (NASDAQ:PSNY) on Monday, following the electric vehicle maker’s recent equity investment announcement. According to InvestingPro data, the company currently operates with a significant debt burden of $5.1 billion and shows weak financial health metrics.

The rating decision comes after Polestar announced on June 16 that it secured a $200 million equity investment from existing investor PSD Investment Limited, which is controlled by Mr. Shufu (Eric) Li, the Founder and Chairman of Geely Holding Group.

The investment transaction involves Polestar selling approximately 190.5 million of its Class A American Depository shares at a price of $1.05 per share to PSD Investment Limited.

Cantor Fitzgerald analyst Andres Sheppard maintained the neutral stance on Polestar stock in light of this capital infusion from its major backer.

The investment represents a significant financial commitment from one of Polestar’s key stakeholders, with the transaction price of $1.05 per share reflecting current market conditions for the Swedish-based electric vehicle manufacturer.

In other recent news, Polestar reported first-quarter revenue of $608 million for 2025, which was below the analyst estimate of $676.62 million. Despite this shortfall, the company saw a significant improvement in its gross margin, reaching 6.8% compared to -7.7% in the previous year. Polestar also announced a $200 million equity investment from PSD Investment Limited, which will aid in its working capital and corporate purposes. Additionally, Polestar has begun U.S. sales of the 2026 Polestar 4, with production slated to start in South Korea. The company is undergoing board changes, with four members stepping down and new directors nominated. Cantor Fitzgerald maintained a Neutral rating on Polestar stock, citing the company’s pause in financial guidance due to macroeconomic uncertainties. Despite challenges, Polestar aims for a 30-35% annual retail sales volume growth from 2025 to 2027 and plans to unveil the new Polestar 5 in late 2025. The company secured over $900 million in financing facilities in the first quarter and is expanding its market presence, including a recent entry into France.

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