Polestar (PSNY) stock drops sharply as news feed dries up

Polestar stock struggled to hold onto the gains made last week and missed out on the huge gains seen at industry leader Tesla (TSLA). Polestar fell sharply on Friday to close at $8.91, a loss of 6.8%.

Read also: Tesla Stock Deep Dive: Price Target at $400 on China Headwinds, Margin Squeeze, Drop in Shipments

Polestar: The Story So Far

The North Star and VOLVO have a long and storied history dating back over 30 years. The story has evolved from a racing relationship between the two brands to its current form where the Swedish car manufacturer and his father Geely are the main shareholders of Polestar. The relationship between Polestar and Volvo began with a high-performance modified version of Volvo cars under the name Flash/Polestar Race.

VOLVO acquired Polestar in 2015 and led to the current iteration of the company, where the electric vehicle company was floated on the stock market by Gores Guggenheim through a Special Purpose Acquisition Company (SPAC) trade under the ticker GGPI, which then turned into PSNY upon conclusion of the SPAC agreement.

Polestar 3 model coming soon

Polestar 3 is an SUV model due to be released soon and is an integral part of the next stage of PSNY’s development. SUV are currently the highest-margin vehicle type for all automakers. The Swedish electric vehicle manufacturer initially launched a hybrid model – the Polestar 1 – before going all-electric with the Polestar 2a sedan model.

Polestar can take advantage of the existing Volvo network which gives it considerable manufacturing advantages. It will use Volvo’s manufacturing plants in China and South Carolina in the United States to build the new vehicle. The Polestar 3 shown in the image below shares various design cues with Volvo and shares the stylish scandinavian look of Volvo cars.

Polestar 3

PSNY or TSLA: Which is better?

PSNY was relatively unknown in the United States until earlier this year, when he launched a Cheeky Superbowl ad attacks both Tesla and Volkswagen. Visibility is steadily increasing but TSLA remains well ahead of all automakers because of its great head start and total commitment to the EV space. As far as design is concerned, it is a personal matter, but in terms of price, the Polestar 2 currently starts at $40,900 and was recently named “Best Premium Electric Car of the Year” by Autotrader UK.

You’re here also has a host of awards to its name. The biggest advantage TSLA a – not just Polestar but all EV newcomers – is brand recognition and strong customer loyalty. The company run by Elon Musk has worked hard to create a unique identity and is one of the most recognized brands in the world in all sectors, not just cars. Polestar, by comparison, has a long way to go to catch up.

Electric vehicle delivery news

TSLA Stock has recently grown strongly on the back of good delivery figures despite headwinds from Shanghai and supply chain issues. But don’t be left behind PSNY Stock was also boosted by a high number of deliveries at the beginning of the month. Polestar delivered 21,200 cars in the first half of this year, an increase of 125% per year. Sounds impressive but compared to The number of Tesla exceeds 250,000 for the last quarter we can see how far Polestar is. Polestar has ambitious plans to deliver 300,000 units by 2025.

PSNY Stock Forecast

PSNY Stock was always likely to suffer once the flow of information dried up, as we had predicted and explained in some of our previous articles. It’s a momentum-focused name and, despite the continued rally in stock markets last week and strong developments in the electric vehicle sector thanks to TSLA, Polestar lost more than 20% on the week. Expect a continued decline in the face of a lack of newsflow. $8.61 remains key support. So far, this price level has worked well as a double bottom for PSNY stock price but the more a level is tested, the weaker it becomes, so this needs to be monitored carefully.

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