Polestar Automotive Holding UK PLC (PSNY -29.61%) stock got demolished this morning, falling 29.4% through 1:50 p.m. ET after reporting earnings for H1 2026.
Wall Street wasn't expecting much from the stock in its report, predicting Polestar would lose money in the quarter. Investors seem to have been taken by surprise, however, by precisely how bad the news was.
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Polestar H1 earnings
How bad was it? Comparing H1 2026 to H1 2025, Polestar sold 0.4% more electric cars, and made 4.4% less money doing so ($1.4 billion). Gross profit margin improved slightly, but remained negative -- meaning every car Polestar sold was worth more as parts than as a whole.
Selling, general, and administrative expenses were unchanged year over year, however, and increases in other operating costs were largely offset by decreases in spending on research and development. As a result, while operating margins were also negative, total operating and net losses declined in the quarter.
Don't get me wrong -- Polestar still lost $842 million in H1 2026, and that's not a good number. But it was at least 29% less money than Polestar lost in H1 2025.
NASDAQ: PSNY
Key Data Points
What's next for Polestar stock
With sales disappointing, Polestar warned that it will reduce its planned production increase this year from double-digit growth to "low-to-mid single-digit volume growth," even as it introduces four new electric car models, including the Polestar 5 and the Polestar 4 SUV.
This isn't an encouraging sign, suggesting management is bracing for a cool reception to its offerings. At the same time, Polestar warns "the market environment is expected to remain highly competitive and volatile." Finally, the company must contend with a U.S. Department of Commerce Bureau of Industry and Security ban on the sale of 2027 model-year Polestars in America.
Things are looking grim for Polestar.
