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2 Auto Stocks Witnessing Decline in Momentum Scores
ByAinvest
Thursday, Sep 11, 2025 8:57 am ET1min read
Two auto stocks, Polestar Automotive and Stoneridge Inc., have seen a decline in their Momentum scores over the past week. Polestar's Momentum score dropped from 80.69 to 25.7 due to a widening net loss and a going concern warning. Stoneridge's score decreased from 83.32 to 35.31 due to disappointing Q2 performance and unfavorable currency movements.
Two prominent auto stocks, Polestar Automotive and Stoneridge Inc., have experienced a notable decline in their Momentum scores over the past week. Polestar Automotive Holding UK PLC (NASDAQ: PSNY), a Swedish electric vehicle (EV) manufacturer, saw its Momentum score drop from 80.69 to 25.7, primarily due to a widening net loss of $1.19 billion in Q2 2025. This loss was largely attributed to a $739 million non-cash impairment charge during the quarter. Additionally, the company issued a going concern warning, indicating potential operational challenges without restructuring or additional funding [2].Polestar's earnings call on September 3, 2025, revealed a revenue of approximately $791 million, exceeding the estimated $641 million. However, the company's earnings per share (EPS) of -$0.49 fell short of the estimated -$0.12, reflecting financial challenges including a negative price-to-earnings (P/E) ratio of -2.69 and a debt-to-equity ratio of -2.15 [3]. Despite these challenges, the company's CEO, Michael Lohscheller, and CFO, Jean-Francois Mady, emphasized the company's commitment to sustainability and electric mobility, targeting a 30-35% compound annual growth rate in retail sales volume from 2025 to 2027 [2].
Stoneridge Inc. (SRI), an auto components maker, saw its Momentum score decrease from 83.32 to 35.31 due to its disappointing second-quarter performance. The company missed consensus estimates by a significant margin and faced substantial pressure from unfavorable currency movements, tariffs, and a costly product mix that weighed on the bottom line [2]. These factors contributed to a decline in the stock's Momentum score and overall financial performance.
Both companies are navigating challenging market conditions and operational hurdles. Investors should closely monitor their financial performance and strategic initiatives, such as Polestar's upcoming launch of the Polestar V on September 8 at the IAA in Munich. These developments will be crucial in assessing their ability to sustain growth and profitability in the competitive EV and auto components markets.
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