Polestar Automotive Holding UK (NasdaqGM:PSNY) shares dipped 3% in the past day, continuing a challenging trend for the EV maker. Over the past month, the stock has dropped 10%. This reflects ongoing concerns around profitability and competition.
See our latest analysis for Polestar Automotive Holding UK.
Zooming out, Polestar’s 12-month share price return has lagged the wider auto sector, registering a -19.6% drop year-to-date and a substantial -30.9% total shareholder return over the past year. While some recent pop in the 7-day share price brings a flicker of momentum, the broader trend remains pressured as investors weigh growth prospects against persistent losses and stiff competition.
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With shares still well below analysts’ price targets and the company reporting double-digit revenue growth, investors face a key decision. Is Polestar undervalued at these levels, or is the market already factoring in all future growth?
At $0.88 per share, Polestar’s stock trades below the most followed narrative’s fair value of $1.00. This gap is drawing plenty of attention given the company’s surging revenue but ongoing losses.
Persistent cash burn and lack of profitability increase reliance on external funding, risking shareholder dilution and limiting future investment. Competitive pressures, pricing challenges, and global supply risks threaten market share, margins, and stable earnings growth.
Wondering what propels such an ambitious valuation? The narrative is built on numbers you might not expect: a future turnaround in margins, bold revenue expansion, and the kind of share growth assumptions rarely seen in the auto world. Click to see the projections that analysts believe could justify a double-digit upside.
Result: Fair Value of $1.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent high cash burn and intensifying competition could derail the bullish case if margins fail to improve or if external funding dries up.
Find out about the key risks to this Polestar Automotive Holding UK narrative.
While analyst forecasts suggest Polestar shares are undervalued, a quick look at how the market values revenue tells a different story. The stock trades at 0.8 times sales, which is considered good value compared to industry peers at 2.3x, but it is still double its fair ratio of 0.4x. This raises the possibility that, despite optimism, further downside risk remains if the market loses patience with growth.
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGM:PSNY PS Ratio as at Oct 2025
If you approach valuation differently or want to build your own outlook on Polestar, dive into the numbers and shape your narrative in a matter of minutes. Do it your way
A great starting point for your Polestar Automotive Holding UK research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSNY.
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