Polestar Stock Slides After Slashing Guidance on Forced U.S. Market Exit

Polestar Automotive (PSNY) shares slid more than 8% in pre-market trading after the electric vehicle maker significantly cut its full-year delivery outlook. The revision came as the company announced it has been barred from selling its cars in the United States from model year 2027 onwards, a move that cripples its growth prospects in a key market.

US Ban Prompts Lowered Outlook

In its second-quarter and first-half 2026 financial report, Polestar said it now expects annual volume growth in the low-to-mid single-digit range. This is a steep reduction from its previous forecast of low double-digit growth.

The guidance cut is a direct result of a decision by the U.S. government. Citing the Connected Vehicle Rule, which restricts vehicles with certain Chinese software or hardware, the Trump administration denied Polestar authorization for U.S. sales starting with its 2027 models. The ruling stems from Polestar's majority ownership by China’s Geely Holding. In a notable contrast, sister brand Volvo Cars was granted authorization to continue its U.S. operations.

Mixed H1 Financial Results

Beyond the outlook, the company's first-half results presented a mixed financial picture. While Polestar managed to narrow its operating loss and achieve record sales, other metrics showed signs of strain.

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Key figures for the first half of 2026 include:

• Retail sales: A record 30,423 vehicles delivered.
• Operating loss: Narrowed by 43% compared to the same period last year.
• Revenue: Declined year-over-year.
• Gross margins: Remained under pressure from tariffs and intensifying competition in the EV space.

Market Reaction

The combination of a structurally impaired U.S. revenue stream and a challenging financial profile drove the sharp sell-off. The stock fell 8.3% in pre-open trading to $11, pushing it toward its 52-week low of $11.75. The decline reflects persistent investor skepticism, with some Wall Street analysts, such as Barclays, having already assigned a Sell rating to the stock prior to the announcement.