Polestar Automotive Holding UK Limited (NASDAQ:PSNY) stock fell nearly 11% in Thursday’s premarket session as investors digested the company’s second-quarter and first-half 2026 results, which highlighted tougher competition and regulatory headwinds, particularly in the U.S.
The company reported mixed second-quarter results, with lower revenue and weaker adjusted profitability partly offset by a sharply narrower net loss and a significant improvement in reported gross margin.
Revenue fell 8.1% year over year to $727 million from $791 million as retail volumes declined, pricing remained under pressure and U.S. restructuring-related costs weighed on results.
Carbon-credit sales fell to $36 million from $61 million, while retail sales declined 4% to 17,296 vehicles.
Polestar Gross Margin Improves
The company’s reported gross margin loss improved to 13.1% from 97.1% a year earlier, largely because the prior-year quarter included a $724 million impairment charge.
However, adjusted gross margin loss widened to 13.1% from 5.6%, reflecting lower revenue, U.S. restructuring measures and the absence of positive one-time effects recorded a year earlier. A higher mix of Polestar 4 vehicles partly offset those pressures.
Net loss narrowed 55.3% to $459 million from $1.027 billion, primarily due to the prior-year impairment charge.
Adjusted EBITDA loss, however, widened to $286 million from $206 million, reflecting the adjusted gross margin loss, restructuring costs, unfavorable foreign exchange movements and lower other operating income.
Cash Outflow Increases In First Half
For the first half of 2026, operating cash outflow widened to $850 million from $498 million, while free cash outflow increased to $1.061 billion from $787 million.
The company ended June with $888 million in cash, compared with $719 million a year earlier.
Polestar CEO Highlights Operational And Product Progress
CEO Michael Lohscheller said the company’s operational improvements are beginning to deliver results, with its reported operating loss falling 43% year over year in the first half of 2026.
He said Polestar remains focused on disciplined execution and improving the business despite a challenging operating environment.
Lohscheller also highlighted progress in the company’s product rollout. Polestar has ramped production of the Polestar 4 SUV in Busan, South Korea, following the opening of orders. The company has shipped the first vehicles from the factory and expects customer deliveries to begin in the fourth quarter.
He added that Polestar expects the first Polestar 5 vehicles to reach customers in the coming weeks, supporting the company’s product momentum heading into the end of the year.
Cuts 2026 Volume Outlook
The company lowered its 2026 volume guidance to low- to mid-single-digit growth from its previous forecast for low-double-digit growth, citing first-half performance, a competitive market and the transition from the Polestar 2 to the Polestar 4 SUV.
Price Action
PSNY Stock Price Activity: Polestar shares were down 10.76% at $10.70 during premarket trading Thursday, according to Benzinga Pro data.
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