Polestar Automotive Holding UK PLC (PSNY): A Bull Case Theory 

We came across a bullish thesis on Polestar Automotive Holding UK PLC on smallstreetbets by TheDigitalBuilder. In this article, we will summarize the bulls’ thesis on PSNY. Polestar Automotive Holding UK PLC’s share was trading at $16.45 as of January 29th.

Polestar Automotive Holding UK PLC engages in the research and development, marketing, commercialization, and sale of battery electric vehicles and related technology solutions. PSNY represents a striking disconnect between fundamentals and perception in the EV market. Despite being treated like a distressed startup, the company has already delivered more than 44,000 vehicles in the first nine months of 2025 and generated over $2.17 billion in revenue. Its operations are backed by Geely Holding, a major global automotive group that also controls Volvo and Lotus, giving Polestar a strategic safety net rarely seen among new-energy vehicle entrants.

The market’s pessimism stems from cash burn, tariff pressures, and compliance issues, yet the company’s structure makes a restructuring or strategic intervention highly plausible. Geely has already demonstrated its willingness to support the brand, most clearly through a $200 million capital injection in June 2025. This reinforces the view that Polestar is a valuable asset within the group—too strategically important to be allowed to fail—and positions a potential take-private transaction as a realistic outcome, enabling Geely to streamline operations away from public scrutiny.

Financially, Polestar ended Q3 2025 with roughly $995 million in cash, against quarterly burn rates of $250–300 million, providing operational runway into mid-to-late 2026 but leaving investors anticipating additional funding measures. The valuation remains disconnected from its scale, with the market treating the company as if operations were at risk of cessation rather than acknowledging its multibillion-dollar revenue base.

Risks remain material, including Nasdaq compliance actions, exposure to U.S. and EU tariffs due to China-based manufacturing, and negative gross margins driven by volume-focused pricing. Mitigation efforts are underway as production ramps in the U.S., though margin relief will take time. For investors able to tolerate volatility, Polestar represents a deep-value distressed asset play with asymmetric outcomes, anchored by the expectation that Geely will ultimately protect the long-term strategic value of the brand.

Previously we covered a bullish thesis on Rivian Automotive, Inc. (RIVN) by LegitosaurusRex in November 2024, which highlighted its U.S.-based production, strengthened financial position, and disruptive upcoming models. The company’s stock price has appreciated approximately by 50.94% since our coverage. This is because the thesis played out as operational execution improved. The thesis still stands as Rivian’s long-term roadmap remains compelling. TheDigitalBuilder shares a similar view but emphasizes Polestar’s strategic support from Geely.

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Disclosure: None.