Polestar Automotive Holding UK (NasdaqGM:PSNY) released full year 2025 results showing revenue of US$3.06b and a net loss of US$2.36b, a combination that keeps the stock in sharp focus for investors.

The recent full year 2025 results and Q1 2026 retail sales update have arrived against a mixed backdrop, with the latest share price at US$18.11, a 30 day share price return of 3.72% and a 90 day share price return of 5.60%, but a 1 year total shareholder return of 41.96% and a 3 year total shareholder return of 82.25% in decline. This suggests some short term momentum is building while longer term holders have seen substantial value erosion as the market weighs stronger revenue against ongoing losses and risks.

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With revenue at US$3.06b, a net loss of US$2.36b and the share price still below the average analyst target, is this a mispriced EV challenger or a market that is already factoring in future growth?

Most Popular Narrative: 20% Undervalued

With Polestar's fair value narrative set at $22.50 against a last close of $18.11, the current pricing gap rests on some punchy long term assumptions.

The analysts have a consensus price target of $22.5 for Polestar Automotive Holding UK based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analysts, you would need to believe that by 2029, revenues will be $8.2 billion, earnings will come to $188.8 million, and it would be trading on a PE ratio of 18.9x, assuming you use a discount rate of 11.9%.

Curious what kind of revenue ramp, margin shift and future earnings multiple sit behind that $22.50 figure? The full narrative spells out the exact profit path analysts are baking in.

Result: Fair Value of $22.50 (UNDERVALUED)

However, persistent cash burn and reliance on external funding, together with intense EV competition, could quickly challenge the idea that Polestar is simply undervalued.

Next Steps

If this mix of risks and potential rewards feels finely balanced, now may be a good time to review the details yourself and decide where you stand with the 1 key reward and 4 important warning signs

Looking for more investment ideas?

If Polestar has sharpened your thinking, do not stop there. Broaden your opportunity set with focused stock ideas that match how you like to invest.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.