Polestar A Plummets 15% Intraday Amid Sector-Wide Turbulence – What’s Fueling the Selloff?
Summary
• PSNY trades at $1.13, down 15.04% from its $1.33 open
• Intraday range of $1.12–$1.31 highlights sharp volatility
• Sector peers like TeslaTSLA-- (TSLA) rally 3.89% as EV tax credit guidance extends delivery timelines
• Options chain surges in activity, with 9472K shares traded and 120%+ implied volatility on key October 17 contracts
The automotive sector is in turmoil as Polestar APSNY-- (PSNY) collapses intraday, dragging down investor sentiment. With EV demand shifting toward hybrids and regulatory timelines extending, the stock’s collapse reflects broader sector jitters. Key technical indicators and options data suggest a pivotal moment for short-term traders.
EV Demand Fizzles as Tax Credit Deadline Looms, Sparking Sector-Wide Jitters
The selloff in PSNY is directly tied to evolving regulatory dynamics in the EV sector. IRS guidance extending EV tax credit eligibility beyond Sept. 30 has created uncertainty for automakers and dealers, while Nissan’s pivot to hybrids underscores waning consumer appetite for battery-electric vehicles. Polestar, already struggling with production delays and high costs, faces amplified pressure as investors reassess its viability in a shifting market. The stock’s 15% drop mirrors broader sector skepticism, with BollingerBINI-- Bands and RSI signaling overbought conditions reversing into bearish territory.
Automotive Sector Splits as Tesla Gains Momentum Amid EV Uncertainty
While Polestar A tumbles, Tesla (TSLA) defies the trend with a 3.89% intraday gain, showcasing divergent investor sentiment. Tesla’s ability to leverage extended tax credit timelines and scale production contrasts sharply with Polestar’s struggles. However, sector-wide themes—such as Nissan’s hybrid pivot and VW’s ID.4 production cuts—highlight structural challenges for EV-focused firms. The 52-week range of PSNY (0.84–1.94) suggests a floor near $0.90, but momentum remains bearish as the 200-day MA (1.08) offers limited support.
Options Volatility Soars: High-Leverage Puts and Calls for Short-Term Bets
• MACD: 0.0575 (bullish divergence), Signal Line: 0.0245, Histogram: 0.0329 (momentum waning)
• RSI: 78.26 (overbought), Bollinger Bands: 1.33 (upper), 1.12 (middle), 0.91 (lower)
• 200D MA: 1.08 (critical support), 30D MA: 1.105 (neutral)
Key levels to watch: 1.12 (intraday low), 1.08 (200D MA), and 0.91 (lower Bollinger). Short-term bearish bias is reinforced by RSI overbought conditions and MACD histogram contraction. The options chain reveals aggressive positioning:
Top Put Option: PSNY20251017P1
• Code: PSNY20251017P1
• Type: Put, Strike: $1, Expiry: 2025-10-17
• IV: 120.66% (high volatility), Delta: -0.3077 (moderate sensitivity), Gamma: 0.7378 (high sensitivity to price swings), Theta: -0.0014 (slow time decay), Turnover: 2467 (liquid)
• Why it stands out: High gamma and IV make this put ideal for a 5% downside scenario (targeting $0.91). Payoff: max(0, 0.91 - 1) = $0.00 (break-even at $1).
Top Call Option: PSNY20251017C1
• Code: PSNY20251017C1
• Type: Call, Strike: $1, Expiry: 2025-10-17
• IV: 120.47% (high volatility), Delta: 0.6923 (high sensitivity), Gamma: 0.7389 (high sensitivity), Theta: -0.0024 (moderate time decay), Turnover: 8202 (liquid)
• Why it stands out: High deltaDAL-- and liquidity suit aggressive bulls expecting a rebound above $1.12. Payoff: max(0, 1.12 - 1) = $0.12 (12% gain).
Action Insight: Aggressive bears should prioritize PSNY20251017P1 for a 5% downside play, while bulls may chase a bounce with PSNY20251017C1. Watch for a breakdown below $1.08 to confirm bearish momentum.
Backtest Polestar A Stock Performance
Act Now: Polestar A’s Volatility Presents High-Risk, High-Reward Opportunities
Polestar A’s 15% intraday drop reflects a perfect storm of regulatory uncertainty and sector-wide EV demand shifts. While the 200D MA at $1.08 offers a near-term floor, the path of least resistance remains downward. Tesla’s 3.89% rally underscores divergent sector dynamics, but Polestar’s liquidity and leverage ratios suggest a volatile near-term outlook. Traders should prioritize the PSNY20251017P1 put for a 5% downside scenario and monitor the 200D MA for a potential reversal. Watch for a breakdown below $1.08 or regulatory reaction to define the next phase of this high-stakes trade.
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