Polestar's stock tumbled 29% over the week following weaker-than-expected Q4 deliveries and increased price competition in the premium EV segment. The decline reflects challenges in sustaining growth amid rising pressure from Tesla and XPeng.
- Polestar (PSNY) stock dropped 29% in one week, the largest decline since 2024.
- Q4 2025 deliveries totaled 37,800 units, down 14% YoY and below analyst expectations.
- Competition from Tesla (TSLA) and XPeng (XPEV) intensified, with price cuts and rising deliveries.
- Polestar’s price-to-sales ratio is now 0.9x, significantly below the EV sector average.
- Company delayed U.S. IPO to 2027 amid ongoing profitability concerns.
- Ripple effects seen in other premium EV stocks, though broad EV indices held steady.
Polestar (PSNY) experienced a sharp 29% drop in share price during the week ending March 7, 2026, marking one of the steepest weekly declines in the company’s history. The sell-off followed the release of fourth-quarter delivery figures that revealed a 14% year-over-year decline in vehicle shipments, with only 37,800 units delivered—falling short of the 42,000-unit consensus forecast. The company attributed the shortfall to supply chain delays and reduced demand in key European markets, particularly Germany and the UK. The decline underscores growing concerns over Polestar’s ability to maintain momentum in the premium electric vehicle segment. Despite a 2025 product refresh and the launch of the Polestar 3 in select markets, the company faced intensified competition from both traditional automakers and Chinese EV manufacturers. XPeng (XPEV) reported a 22% increase in global deliveries during the same period, highlighting a broader shift in consumer preference toward more affordable, tech-forward alternatives. Tesla (TSLA) also contributed to the sentiment, as its Model Y saw a 13% price reduction in Europe, undercutting Polestar’s pricing strategy. Analysts note that Polestar’s lack of a scalable platform and reliance on Volvo’s infrastructure have constrained its ability to respond quickly to market changes. The stock’s price-to-sales ratio now stands at 0.9x, well below the EV sector average of 1.8x. The sell-off has affected investor confidence across the premium EV space, with Lucid Motors and Rivian also seeing single-digit declines. However, the impact appears contained to niche players, with broader EV indices remaining stable. Investors are now reassessing Polestar’s long-term viability, especially as the company delays its planned IPO in the U.S. until 2027.