Why Polestar Automotive Stock Crashed 20% After Its Reverse Stock Split This Week

Shares of Polestar Automotive (NASDAQ: PSNY) crashed 19% this week, according to data from S&P Global Market Intelligence. The company is struggling to generate a profit and has seen a crashing stock price, recently having to perform a reverse stock split in order to have a high enough stock price to be listed on the Nasdaq exchange. Electric vehicles have gone through a boom and bust cycle, with Polestar struggling to generate a profit and burning a lot of money.The stock is now down 96% from all-time highs. Here's why Polestar shares were falling yet again this week. Back during the electric vehicle (EV) boom, Polestar was able to raise $890 million through a SPAC (special purpose acquisition company) to fund its growth plans. With multiple models coming down the pipe, it aimed to offer a premium EV brand and ride the wave of the electrification of the automotive space.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool