(Reuters) -Sweden’s Polestar on Friday said it would conduct a one-for-thirty reverse stock split of its American Depository Shares as the electric vehicle maker seeks to avoid a Nasdaq delisting.
The reverse split, which consolidates multiple shares into fewer, will not change the value of investors’ overall holdings but can mechanically lift the share price above $1 to regain compliance.
Polestar in October said it was notified by the Nasdaq for not meeting the exchange’s listing rules related to maintaining a minimum bid price of $1.
The news comes a few days after Polestar reported a wider third-quarter loss while grappling with pricing pressures and high production costs due to tariff-driven uncertainty.
Polestar has also shifted to a dealer-focused model from direct selling and is leaning harder on Europe to offset weak U.S. demand where buyers increasingly favor hybrids and gasoline cars.
The company expects the ADS ratio change will be effective before the end of the year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)
Brought to you by www.srnnews.com
