TLDR
- Polestar stock surged nearly 17% on August 27, 2025, climbing from $1.10 to over $1.30 with an intraday high of $1.38
- The rally was driven by speculation about a potential U.S.-EU trade agreement that could ease regulations for European electric vehicle sales in America
- Stock recently hit a 52-week high of $0.61 under ticker PSNYW, showing a remarkable 269% gain over the past year
- Q1 2025 revenue jumped 84% year-over-year to $732 million with improved gross margins and reduced net losses
- Company secured $450 million facility and received $200 million equity investment to support expansion plans
Polestar stock jumped nearly 17% on Tuesday as rumors swirled about potential regulatory changes that could benefit European electric vehicle makers. The Swedish automaker’s shares climbed from $1.10 at market open to over $1.30.
Trading volume spiked to 17.8 million shares, well above the 52-week average. The intraday high reached $1.38 as investors piled into the stock.
The rally came on speculation that the U.S. and European Union might reach an agreement on mutual recognition of vehicle safety and emissions standards. Such a deal could reduce regulatory barriers for companies like Polestar trying to expand in the American market.
This latest surge builds on already strong momentum for the electric vehicle maker. Under ticker PSNYW, Polestar recently hit a 52-week high of $0.61. The stock has gained 269% over the past year.
Options traders are betting on more upside ahead. Activity in 2026 and 2027 contracts shows aggressive bullish positioning following Tuesday’s jump.
Financial Performance Shows Strong Growth
Recent quarterly results paint a picture of rapid expansion. Polestar reported Q1 2025 revenue of $732 million, an 84% increase from the same period last year.
The company improved its gross margin to 7% while cutting its net loss by 31%. These metrics suggest Polestar is making progress toward profitability as it scales production.
Retail sales data backs up the revenue growth. Q2 2025 deliveries reached 18,049 vehicles, up 38% compared to Q2 2024. For the first half of 2025, total sales climbed 51% year-over-year to 30,319 cars.
The sales momentum reflects growing demand for Polestar’s electric vehicle lineup. The company continues expanding its model range and global footprint.
Funding Secured for Expansion Plans
Polestar has lined up financing to support its growth strategy. The company secured a 12-month, $450 million credit facility to provide operational flexibility.
It also renewed a âŹ480 million Green Trade Finance Facility. These funding sources give Polestar resources to invest in production capacity and new markets.
PSD Investment, already a major shareholder, provided an additional $200 million equity investment. This injection of capital strengthens Polestar’s balance sheet as it pursues expansion.
The funding comes as Polestar faces competition from established automakers entering the electric vehicle space. Having adequate capital is crucial for competing on product development and manufacturing scale.
Technical analysts see potential for more gains if the stock can hold current levels. A close above $1.35 could set up a test of the previous 52-week high around $1.94.
However, the stock remains volatile with a beta of 1.94. Investors should expect continued price swings as the market digests regulatory developments and quarterly results.
Polestar received the $200 million equity investment from PSD Investment in recent months to support its operational expansion efforts.
