Polestar Revenue Drops 8% as Negative Working Capital Hits $4.7 Billion

Key Facts

1Polestar reported an 8% revenue decline in Q2 with continued significant losses.

2The company's negative working capital exceeded $4.7 billion despite support from Geely and Volvo.

3Management cut annual sales expectations due to US restrictions on Chinese EVs and tough competition.

Amid intensifying pressures within the global electric vehicle sector, Polestar reported weak second-quarter financial results, highlighted by an 8% decline in revenue. According to reports, the company continued to post significant losses during the period, reflecting operational difficulties in a highly competitive market. These results underscore the challenges smaller EV players face when competing against established industry giants.

Regarding its financial position, the company's negative working capital exceeded $4.7 billion, despite ongoing backing from Geely and Volvo. Polestar is facing additional headwinds from new US restrictions on Chinese-made electric vehicles, which prompted management to lower its annual sales guidance. Per analyst data, this massive liquidity deficit places severe strain on the balance sheet at a time when the company requires capital to fund its growth.

Looking ahead, markets remain focused on the company's ability to navigate international trade barriers and pricing competition, particularly as updated price levels for PSNY shares are currently unavailable. On the macro front, investors are monitoring global manufacturing data, noting that China's Manufacturing PMI contracted to 49.5 in August 2026, a factor that could further impact the company's supply chain dynamics.