Polestar Automotive (PSNY) Soars 3.48% on 84% Revenue Growth

Polestar Automotive's stock (PSNY) surged by 3.48%, reaching its highest level since March 2025, with an intraday gain of 5.22%.

The strategy of buying PSNY shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.77% annualized gain. However, the maximum drawdown of 32.08% during the 2023 downturn highlighted its vulnerability in market downturns. The strategy's beta of 1.37 indicated it took on slightly more risk than the market, making it suitable for risk-tolerant investors looking for potential outperformance with higher volatility.

Polestar Automotive reported an impressive 84% revenue growth in the first quarter of 2025, along with a significant improvement in gross margin turning positive. This financial performance likely contributed to the positive market sentiment and the subsequent rise in the company's stock price.

In January 2025, Polestar doubled its sales in Sweden, surpassing Tesla to become the third most purchased electric car in the country. This achievement not only highlights the company's growing market presence but also suggests a positive market perception, which could further drive investor confidence and stock price.

In February 2025, Polestar introduced discounts of up to $20,000 on new leases of its models for Tesla owners in the US and Canada. This strategic move aims to attract more customers by offering competitive pricing, which could potentially boost sales and positively impact the stock price.