Polestar A Plummets 8.14% Amid Nasdaq Delisting Threat and Sector Turmoil

Summary
• Polestar Automotive (PSNY) receives Nasdaq delisting notice for failing $1 bid price requirement
• Q3 2025 retail sales grew 13% but shares trade near 52W low of $0.76
• Options market sees heavy put buying as volatility spikes to 132.46%

Polestar A (PSNY) is in freefall, trading at $0.7761 (-8.14%) as of 5:43 PM ET. The stock has collapsed from its intraday high of $0.83 to a 52-week low, driven by a Nasdaq compliance warning and deteriorating fundamentals. With 3.98M shares traded, the market is sounding alarms about the EV maker's survival prospects.

Nasdaq Delisting Notice Sparks Investor Panic
Polestar's 8.14% intraday plunge stems directly from its Nasdaq delisting notice, which requires the stock to maintain a $1 bid price. The company has until April 29, 2026 to resolve this, with an additional 180-day extension possible. This regulatory threat compounds existing challenges: Polestar's operating margin of -95.55% and Altman Z-Score of -3.87 signal severe distress. Recent news of a $739M valuation hit and a $200M equity investment from Geely highlight the company's precarious liquidity position.

EV Sector Volatility Intensifies as Tesla Surges
While Polestar crumbles, Tesla (TSLA) is surging 2.72% on strong Q3 delivery guidance. The EV sector remains polarized: Polestar's 52W high of $1.42 contrasts sharply with Tesla's $250B+ market cap. Regulatory pressures (e.g., EU CO2 targets) and production challenges (e.g., US tariffs) are creating divergent outcomes. Polestar's European production strategy and lack of US market traction further isolate it from sector leaders.

Options Playbook: Capitalizing on PSNY's Volatility
• RSI (14): 40.85 (oversold territory)
• MACD: -0.0311 (bearish divergence)
• Bollinger Bands: 0.8168 (lower band) vs 0.9451 (upper band)
• 200-day MA: $1.05 (far above current price)

Key levels to watch: 0.8456 (30D support) and 1.0495 (200D resistance). With RSI near oversold levels and MACD signaling bearish momentum, short-term traders should focus on defensive options strategies. The 200-day MA at $1.05 represents a critical psychological hurdle for a potential rebound.

Top Options Plays:
1. PSNY20270115P1 (Put Option)
- Strike: $1.00
- Expiry: 2027-01-15
- IV: 132.46% (extreme volatility)
- Delta: -0.277 (moderate sensitivity)
- Theta: -0.000362 (slow time decay)
- Gamma: 0.295 (high sensitivity to price swings)
- Turnover: 55 contracts
- Payoff at 5% downside: $0.225 (max(0, 0.737 - 1.00))
- This deep out-of-the-money put offers asymmetric upside if Polestar's delisting risk escalates. The high gamma and IV make it ideal for a sharp move below $0.80.

2. PSNY20280121C1 (Call Option)
- Strike: $1.00
- Expiry: 2028-01-21
- IV: 114.60% (elevated volatility)

Trading Outlook: Aggressive short-sellers should target the 0.8456 support level with PSNY20270115P1. Bulls may consider the 2028 call for a 12-month horizon, but only if Polestar secures additional funding before Q4.

Backtest Polestar A Stock Performance
Here is your event-driven back-test on Polestar Automotive (PSNY.O) for all trading days since 1 Jan 2022 when the stock closed at least 8 % lower than the previous day’s close:Key findings (sample = 2 events) • Short-term pressure: median event return after 1 trading day –3.4 %; after 3 days –0.8 %. • Mean reversion emerges after c. one week; by day 10 the cumulative return gap versus the benchmark has almost closed. • Strong late rebound: by day 24 the strategy shows +17.5 % vs –3.6 % for the benchmark; by day 30 the edge widens to +19.1 % vs –4.6 %. • Statistical significance is low at every horizon because the sample contains only two qualifying plunges (24 May 2024 & 28 May 2024). Treat results as indicative rather than conclusive.Assumptions & notes 1. “–8 % intraday plunge” was proxied with a daily close-to-close drawdown of ≤ –8 % (high-low intraday series for PSNY is not available via the current data endpoint). 2. Back-test window: 2022-01-01 → 2025-11-03, price series: daily close. 3. No transaction costs or risk controls were applied; positions were evaluated for 30 trading days after each event.To inspect the full interactive charts and tables, please refer to the embedded module below.Please open the module to explore the event-study visuals (cumulative returns, win-rate curve, significance metrics, etc.). Let me know if you’d like deeper analysis—for example, adding risk controls, comparing to peer EV stocks, or testing different drawdown thresholds.

Act Now: PSNY at Critical Crossroads
Polestar's delisting threat and -95.55% operating margin create a high-risk profile. Immediate focus should be on the 0.8456 support level and the Nasdaq compliance deadline. While Tesla's 2.72% rally highlights sector divergence, Polestar's options market suggests extreme bearish sentiment. Traders should prioritize the PSNY20270115P1 put for short-term volatility plays and monitor the 2028 call for speculative longs. With 3.98M shares traded and a 132.46% IV spike, this is a pivotal moment for Polestar's survival.