Polestar (PSNY)’s US Exit Just Showed Up in its Guidance

Polestar Automotive Holding UK PLC (NASDAQ:PSNY) has slashed its full-year 2026 delivery forecast due to being barred from selling newer vehicles in the United States. The Swedish automaker now expects low-to-mid single-digit annual growth, down from previous low double-digit expectations. This means full-year deliveries will likely be around 61,900 to 63,100 vehicles.

Shares dropped up to 16% following the news. Polestar's second-quarter revenue fell 8% year-over-year to $727 million, missing estimates. The company also recorded $130 million in U.S. restructuring charges. Despite these setbacks, Polestar narrowed its net loss 55.3% to $459 million, thanks to the exclusion of a large impairment charge from the prior year's figure.

The firm remains disciplined and focused on improving the business. Polestar has opened orders for its new SUV 4 and plans several refreshed models to boost demand outside the U.S. market. The firm raised $700 million in fresh equity during the first half of 2026, providing more capital for operations and new model launches. However, the U.S. exit has substantial direct financial costs, including $130 million in restructuring charges.

Free cash flow worsened to negative $1.06 billion in the first half of 2026, up from negative $787 million a year earlier. Weak sales growth, rising cash needs, and the loss of the U.S. market present a challenging scenario for Polestar.