Published by Global Banking and Finance Review
Posted on November 14, 2025
1 min readLast updated: January 21, 2026
Polestar announces a one-for-thirty reverse stock split to maintain Nasdaq listing, addressing financial challenges and shifting sales strategies.
(Reuters) -Sweden's Polestar on Friday said it would conduct a one-for-thirty reverse stock split of its American Depository Shares as the electric vehicle maker seeks to avoid a Nasdaq delisting.
The reverse split, which consolidates multiple shares into fewer, will not change the value of investors' overall holdings but can mechanically lift the share price above $1 to regain compliance.
Polestar in October said it was notified by the Nasdaq for not meeting the exchange's listing rules related to maintaining a minimum bid price of $1.
The news comes a few days after Polestar reported a wider third-quarter loss while grappling with pricing pressures and high production costs due to tariff-driven uncertainty.
Polestar has also shifted to a dealer-focused model from direct selling and is leaning harder on Europe to offset weak U.S. demand where buyers increasingly favor hybrids and gasoline cars.
The company expects the ADS ratio change will be effective before the end of the year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)
A reverse stock split is a corporate action where a company reduces the number of its outstanding shares, increasing the share price proportionally. This is often done to meet listing requirements on stock exchanges.
Nasdaq is a global electronic marketplace for buying and selling securities, known for its high-tech companies. It operates as a stock exchange and is one of the largest in the world.
An American Depository Share (ADS) represents shares in a foreign company traded on U.S. exchanges. It allows U.S. investors to invest in foreign companies without dealing with foreign stock markets.
Compliance in finance refers to the process of adhering to laws, regulations, and guidelines set by governing bodies to ensure ethical and legal conduct in financial operations.
A stock exchange is a regulated marketplace where securities, such as stocks and bonds, are bought and sold. It provides a platform for companies to raise capital and for investors to trade.
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