PSNY Stock On Track For Worst Day Ever As CEO Says Firm Will Not Appeal US Ban On New Vehicle Sales

(MENAFN- AsiaNet News)

• On the earnings call, Lohscheller closed the door on a fight with U.S. regulators.
• The U.S. government blocked Polestar from selling new cars in June, starting with the 2027 model year.
• Management is now leaning on Europe, which accounted for 78% of first-half volume, and on two cars aimed at larger segments.

Shares of Polestar (PSNY) sold off hard on Thursday after the Geely-backed electric-car maker cut its 2026 volume outlook and said it would not fight a U.S. ban on new-model sales starting in 2027.

At the time of writing, PSNY shares traded 29% lower, on track for its worst day ever, if losses hold.

Record Sales, Weaker Guidance

Polestar sold 30,423 cars in the first half, a slight increase from a year earlier, helped by a 39% expansion of its retail network. Revenue still fell 4.4% to $1.36 billion. Pricing pressure, lower carbon-credit sales, and costs tied to the U.S. pullback outweighed the extra volume.

The reported operating loss narrowed 43% to $629 million, mainly because last year's large write-downs did not repeat. Cash stood at about $888 million at the end of June.

The company now expects only“low-to-mid single-digit” volume growth for 2026, down from previously expected low double-digit growth. CEO Michael Lohscheller blamed“continued market pressure” and a shift in the model lineup as the current Polestar 2 winds down and the Polestar 4 SUV ramps in the fourth quarter.

No Appeal Of The US Ban

On the earnings call, Lohscheller closed the door on a fight with U.S. regulators.“We will not appeal and accept this decision,” he said.“That means we will sell model year 2026 now in the U.S., but are not able to sell model year 2027. Obviously, we will continue with service and used car business in the U.S. We will stay there, but we will not appeal that decision.”

The U.S. government blocked Polestar from selling new cars in June, starting with the 2027 model year, by denying it a permit under a federal rule that bans cars with software and hardware linked to China.

The U.S. market represented 6% of first-half retail sales, down from 9% in the same period of 2025, CFO Jean-François Mady said. Charges related to the U.S. government decision are estimated at about $130 million, with more possible, he added.

Betting On Europe And New Models

Management is now leaning on Europe, which delivered 78% of first-half volume, and on two cars aimed at larger segments: the Polestar 4 SUV, with deliveries starting in the fourth quarter, and a Polestar 2 successor in 2027.“Now with SUV, we go right into the sweet spot of the market,” Lohscheller said. Polestar 5, the brand's halo car, will begin reaching customers in the coming weeks but will remain a small-volume model.

CFO Jean-François Mady said Polestar has cut capital spending by a third. With the higher-margin Polestar 4 taking a larger share of sales and tighter working-capital management, he said cash burn should fall significantly in the second half after a heavy first-quarter outflow.

How Did PSNY Retail Traders React?

On Stocktwits, retail sentiment around PSNY remained 'bullish' over the past 24 hours, while message volume rose from 'normal' to 'high' levels.

A Stocktwits user termed the selloff on Thursday an overreaction and added that the ban will be lifted once Trump's term in the White House ends.

View this Stocktwits post

Another user compared the firm to now-bankrupt EV company Fisker. Fisker, founded in 2016, filed for bankruptcy in 2024 after accumulating losses and after a cash-injection deal with another automaker fell through.

View this Stocktwits post

PSNY stock has fallen 60% year-to-date.  

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