The U.S. technology exchange Nasdaq has warned electric car manufacturer Polestar that trading in its shares could be suspended next year after the company’s stock price fell below the exchange’s minimum requirement of $1. Polestar shares have traded under that threshold for several weeks, putting the automaker at risk of delisting.
Polestar went public in June 2022 through a merger with Gores Guggenheim, a special purpose acquisition company (SPAC), raising $890 million and debuting on Nasdaq with a valuation of $27.42 billion.
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However, only about 6% of Polestar’s shares were freely traded, while the remaining 94% were held by Geely and its Swedish subsidiary Volvo Cars, limiting the influence of public shareholders. Since its listing, Polestar has reported consistent losses and has yet to pay dividends.
After debuting at $13 per share, Polestar’s stock has steadily declined, falling below the $1 mark several times since 2024. Nasdaq has now requested the company to take measures—such as share buybacks—to restore compliance. Polestar has until April 29, 2026, to lift its share price above $1, with a possible 180-day extension. Failure to do so could result in delisting from Nasdaq.
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A delisting would not necessarily end Polestar’s public trading, as the company could seek a listing on another exchange with less stringent rules. However, analysts suggest that Geely and Volvo Cars might consider taking Polestar private to cut compliance costs and avoid the continued erosion of its market value. Polestar’s market capitalization has fallen from $27.42 billion at the time of its IPO to under $2 billion today.
