Cantor Fitzgerald Maintains ‘Neutral’ Rating on Polestar

Cantor Fitzgerald analyst Andres Sheppard reiterated on May 13, 2025, a ‘Neutral’ rating on Polestar.

“We remain Neutral on PSNY after the company paused its FY25 financial guidance on 5/12, (amidst worsening macro conditions and tariff uncertainty), and given the company’s additional capital needs (we expect PSNY needs >$2B through 2028).

We see Polestar as materially impacted by tariffs and geopolitcs, since the company is primarily producing its vehicles in China.

Nonetheless, PSNY reaffirmed its annual retail sales volume growth target of 30-35% (between 2025-2027).

The company previously opened a manufacturing facility in Charleston, SC, (which may help mitigate tariff impact on U.S. Sales).

Still, recall this facility is shared with Volvo, and has an annual production capacity of ~150,000 vehicles (and consists of o ne line).

At this facility, we expect Polestar’s vehicle production mix to consist of up to 50,000 vehicles.

Separately, Polestar also reaffirmed that its new production facility in South Korea in on track for 2H25, and that the company also expects to unveil its Polestar 5 in 2H25, which we see as material catalysts.

However, Polestar has recently undergone several key management changes, and has also experienced delayed financial reporting and multiple restatements.

As such, we remain conservative and Neutral in the near term.”

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