As consumers are noticeably pulling back from electric vehicles, the many companies which eagerly piled into the market niche are suffering. One of the latest developments involves Swedish automaker Polestar being notified by Nasdaq that it might be booted off the stock market index.
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It sounds like Polestar is scrambling to get its financials in order, but we’re not entirely sure why. A report from Reuters indicates the issue which could lead to Polestar being dropped from the Nasdaq is the untimely filing of its annual financial report with regulators in the US.
Reportedly, the Swedish automaker still hasn’t disclosed its 2023 annual report as well as its Q1 2024 report. But it apparently has 60 days to submit a plan of compliance, not the financial reports, which seems surprisingly lenient.
We have no idea why Polestar hasn’t provided its financial report for 2023 or the first quarter of this year. It could be a sign of any number of things, from disarray inside the company to an effort to portray its financial situation in the best light possible. But we do find it rather unusual.
Reuters said Polestar released a statement in April informing the public it was delaying its Q4 2023 and annual report for the second time.
However, a press release from the company in January 2024 claims sales for Q4 2023 were up 6% year over year. But it later stated that Q1 2024 sales tanked by about 40% year over year. Many have taken note of the fledgling automaker’s struggles, wondering if it has what it takes to last for the long haul.
Perhaps Polestar will get its financials together, stay on the Nasdaq, get sales back up to where they should be (maybe more), and become a force to be reckoned with in the market. But with how much other EV brands have been struggling lately, there seem to be plenty of headwinds working against all that happening, at least in the short term.
Image via Polestar
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