Polestar A Plummets 18.4%: Impairment Charge and Market Volatility Spark Investor Anxiety

Summary
• Polestar A (PSNY) plunges 18.4% to $1.085, its lowest since June 2024
• $739M impairment charge on Polestar 3 erodes gross margin to -49.4%
• $200M equity raise and $719M cash position highlight liquidity pressures
• EV sector mixed as Tesla (TSLA) surges 1.74% amid AI-driven optimism

Polestar A’s intraday collapse reflects a perfect storm of accounting headwinds and market skepticism. The $739M impairment charge on Polestar 3—driven by U.S. tariffs and pricing pressures—has triggered a sharp selloff, while the company’s $200M equity raise underscores its precarious liquidity position. With the stock trading near its 52-week low of $0.84, investors are weighing the sustainability of Polestar’s aggressive expansion against its deteriorating margins.

Impairment Charge and Market Volatility Drive Sharp Decline
Polestar’s 18.4% drop stems from a $739M impairment charge on Polestar 3, which slashed its gross margin to -49.4% for H1 2025. The charge, tied to reduced forecasted profitability from U.S. tariffs and EV pricing wars, has rattled investor confidence. Compounding the issue, the company’s $200M equity raise—while stabilizing liquidity—signals desperation amid $1.193B net losses. The stock’s collapse aligns with broader market jitters, as EVs face regulatory headwinds and margin compression.

EV Sector Mixed as Tesla Gains Momentum
While Polestar A tumbles, Tesla (TSLA) surges 1.74% on AI-driven production optimism. The EV sector remains fragmented: Rivian (RIVN) and Lucid (LCID) trade lower, but BYD (BYDDY) and NIO (NIO) show resilience. Polestar’s struggles highlight its vulnerability to margin pressures and regulatory shifts, contrasting with Tesla’s scale-driven cost advantages. The sector’s divergence underscores Polestar’s precarious position as a niche EV player.

Options and ETFs for Navigating Polestar's Volatility
• RSI: 78.26 (overbought)
• MACD: 0.0575 (bullish divergence)
• Bollinger Bands: $1.332 (upper), $0.9067 (lower)
• 200D MA: $1.084 (near support)

Polestar’s technicals suggest a bearish breakdown, with RSI overbought and price near the lower Bollinger Band. Key levels to watch: $1.057 (30D support) and $1.072 (200D support). The stock’s high implied volatility (IV) and leverage ratios make options attractive for directional bets.

Top Options:
• PSNY20250919P1 (Put):
- Strike: $1.00
- IV: 108.91% (extreme volatility)
- Delta: -0.318 (moderate sensitivity)
- Theta: -0.001655 (slow decay)
- Gamma: 1.3988 (high sensitivity to price swings)
- Turnover: 573
- Leverage: 18.08%
- Payoff (5% down): $0.0425 (max profit if price falls below $1.00)
- Why: High gamma and leverage amplify gains in a sharp decline.

• PSNY20250919C1 (Call):
- Strike: $1.00
- IV: 147.88% (extreme volatility)
- Delta: 0.663 (strong directional bias)
- Theta: -0.005076 (rapid decay)
- Gamma: 1.0542 (high sensitivity)
- Turnover: 28,003
- Leverage: 6.03%
- Payoff (5% down): $0 (no value if price falls below $1.00)
- Why: High liquidity and delta make it ideal for short-term volatility plays.

Action: Aggressive bears should prioritize PSNY20250919P1 for a 5% downside scenario. Bulls should avoid long calls due to theta decay.

Backtest Polestar A Stock Performance

Act Now: Polestar's Volatility Presents High-Risk Opportunities
Polestar’s 18.4% drop reflects a critical juncture for the EV sector. While the $739M impairment charge and $1.193B net loss signal distress, the stock’s proximity to key support levels ($1.057–$1.072) offers tactical entry points for contrarians. Investors should monitor the $1.00 level—a psychological floor—and the company’s September 3 conference call for guidance. Watch Tesla (TSLA, +1.74%) for sector sentiment. For high-risk traders, PSNY20250919P1 offers leverage on a potential breakdown, but only if $1.00 is breached decisively.