New York, USA – Swedish electric vehicle maker Polestar Automotive Holding UK Plc confirmed on Friday that it had received a notice from Nasdaq regarding potential delisting, after its U.S.-listed shares fell below the exchange’s minimum bid price requirement of $1 per share.

Polestar’s shares closed at 84 cents on Friday, reflecting a 20% decline this year, following a drop of more than 50% last year. The notice provides Polestar with 180 days, until April 29, 2026, to restore compliance by achieving a closing price of at least $1 per share for ten consecutive business days. If the company fails to meet the requirement, it may be eligible for an additional 180-day extension.

Competitive Pressures in the EV Market

Despite efforts to boost sales through discounts and leasing incentives, Polestar faces stiff competition from larger EV manufacturers such as Tesla (TSLA.O) and BYD (002594.SZ). Wall Street analysts remain cautious about Polestar’s growth potential, even as demand remains strong in its home market of Europe.

The company’s challenges highlight the difficulties faced by smaller EV manufacturers in a rapidly evolving and competitive sector dominated by established global players.

Polestar’s Previous Nasdaq Compliance Issues

This marks the second time Polestar has faced potential Nasdaq non-compliance. Last year, the company was at risk of delisting after failing to file its annual report with the U.S. Securities and Exchange Commission on time. While Polestar has since addressed reporting compliance, the persistent stock price weakness underscores ongoing investor concerns about profitability and long-term growth in the EV segment.

Outlook and Next Steps

Polestar must now focus on strategies to boost investor confidence, including sales growth, market expansion, and effective marketing in the competitive EV landscape. Analysts suggest that product innovation, European market dominance, and competitive pricing will be crucial in stabilizing its share price and avoiding a potential delisting.

The Nasdaq warning serves as a reminder of the challenges facing emerging EV companies attempting to compete on the global stage while navigating stock market listing requirements.