Should You Buy Polestar Stock While It's Below $2.50?

Core Viewpoint - Polestar Automotive has undergone significant management changes and is attempting to recover from production delays and declining demand, with its stock price experiencing a notable increase since early August, although it remains substantially below its initial public offering price. Group 1: Company Challenges - Polestar has faced production delays and a decline in consumer demand, delivering only 54,600 vehicles last year against a target of 80,000, and experiencing a 27% drop in deliveries in the first half of this year with 20,371 vehicles delivered [4][2] - The company has been impacted by tariffs on Chinese-made vehicles, leading to a shift in production for its Polestar 3 to the United States and Polestar 4 to South Korea, facing tariffs of 20% for EU imports and over 100% for U.S. deliveries [5][2] - Compliance issues with Nasdaq listing rules have also posed challenges, with the company failing to meet reporting deadlines and being notified of non-compliance due to its share price falling below $1 for 30 consecutive trading days [6] Group 2: Management Changes - A new management team has been established, including a new CEO, CFO, head of design, and head of global communications, with the new CEO, Michael Lohscheller, having prior experience with other struggling EV makers [7] Group 3: Financial Performance - In the past year, Polestar earned approximately $2 billion but reported a net loss of $1.4 billion, ending the second quarter with around $669 million in cash and cash equivalents [8] - The company secured $300 million in funding in August and has taken on $1.3 billion in external financing this year, although it is still not fully funded [8] Group 4: Future Outlook - Polestar anticipates a stronger second half of the year, particularly in the fourth quarter, aiming to deliver 155,000 vehicles next year and achieve break-even cash flow [9]