Polestar A (PSNY) Surges 12.5% on $300M Equity Investment: Is This the Catalyst for a New Bull Run?

Summary
• Polestar A (PSNY) rockets 12.47% to $17.016, hitting an intraday high of $17.4251
• Strategic $300M equity investment from Banco Bilbao Vizcaya Argentaria and Natixis fuels speculation
• Intraday range spans $15.00 to $17.4251, signaling sharp short-term volatility

Polestar A’s explosive move on December 24, 2025, has ignited market attention as the stock surges 12.47% intraday. The surge follows a $300 million equity investment from two major European banks, signaling a potential liquidity lifeline for the EV automaker. With the stock trading near its 52-week high of $42.60, investors are weighing whether this capital infusion marks a turning point for Polestar’s restructuring efforts.

Strategic Equity Injection Fuels Polestar's Bullish Momentum
The 12.47% intraday surge in Polestar A (PSNY) is directly tied to a $300 million equity investment from Banco Bilbao Vizcaya Argentaria and Natixis, announced earlier in the session. This capital injection addresses liquidity concerns and signals institutional confidence in Polestar’s restructuring strategy. The move coincides with broader market optimism around EV sector tailwinds, including NGEU-funded infrastructure projects in Europe and AI-driven manufacturing efficiency gains. With the stock trading near its 52-week high, the investment appears to have reignited speculative buying ahead of year-end trading.

EV Sector Volatility Amid Polestar's Surge
While Polestar A’s 12.47% gain stands out, the broader EV sector remains mixed. Tesla (TSLA), the sector leader, fell 1.12% intraday, reflecting profit-taking after a recent rally. However, Polestar’s move aligns with renewed interest in undervalued EV plays, particularly those with strategic partnerships. The stock’s performance contrasts with peers like Rivian (RIVN) and NIO (NIO), which have underperformed due to production delays and regulatory hurdles. Polestar’s equity infusion positions it as a potential beneficiary of European EV subsidies and supply chain stabilization.

Options Playbook: Leveraging Polestar's Volatility with Gamma-Driven Contracts
• MACD: 3.48 (above signal line 2.98), RSI: 72.83 (overbought), Bollinger Upper Band: $21.56 (resistance), 200D MA: $1.69 (far below price)
• Key Levels: $17.42 (intraday high), $15.00 (support), $18.00 (psychological threshold)
• Short-Term Outlook: Bullish continuation if $17.42 holds; bearish reversal if $15.00 breaks

Two options contracts stand out for their gamma and leverage potential:

• PSNY20260116C18 (Call, $18 strike, Jan 16 expiry):
- IV: 121.44% (high volatility)
- Leverage Ratio: 9.98%
- Delta: 0.489 (moderate sensitivity)
- Theta: -0.055 (rapid time decay)
- Gamma: 0.075 (price sensitivity acceleration)
- Turnover: 975 (liquid)
- Payoff at 5% Upside: $0.85 per contract
This contract offers asymmetric upside if Polestar breaks $18, with gamma amplifying gains as the stock approaches the strike.

• PSNY20260220C12 (Call, $12 strike, Feb 20 expiry):
- IV: 323.53% (extreme volatility)
- Leverage Ratio: 3.03%
- Delta: 0.822 (high sensitivity)
- Theta: -0.052 (aggressive decay)
- Gamma: 0.012 (modest acceleration)
- Turnover: 2,769 (highly liquid)
- Payoff at 5% Upside: $5.36 per contract
Ideal for aggressive bulls, this deep-in-the-money call offers capital preservation with leveraged exposure to Polestar’s near-term momentum.

Action Alert: Aggressive bulls should target PSNY20260116C18 into a break above $17.42. Conservative traders may use PSNY20260220C12 as a core position ahead of Q1 earnings.

Backtest Polestar A Stock Performance
The backtest of PSNY's performance after a 12% intraday increase from 2022 to now shows mixed results. While the stock experienced a maximum return of 0.06% on the day following the intraday surge, the overall short-term and medium-term win rates are below average. This suggests that while the stock had a brief opportunity for gains, it largely failed to capitalize on the momentum generated by the intraday surge.

Polestar's $17.42 Threshold: A Make-or-Break Moment for 2026
Polestar A’s 12.47% surge hinges on its ability to sustain momentum above $17.42, the intraday high. A close above this level would validate the $300M investment as a catalyst for a broader rally, while a breakdown below $15.00 could reignite bearish sentiment. Investors should monitor Tesla’s (-1.12%) performance as a sector barometer. For now, the PSNY20260116C18 call option offers a high-gamma play on Polestar’s short-term volatility. Act now: If $17.42 holds, scale into the $18 call; if not, exit long positions and consider the $15 put (PSNY20260116P15) for downside protection.