When it comes to finding low-cost stocks that pack a punch, Polestar Automotive Holding UK PLC (NASDAQ: PSNY) is emerging as a standout contender in the electric vehicle (EV) space—and it’s one every savvy investor should watch closely. At Extreme Investor Network, we don’t just list cheap stocks; we dissect their growth engines, market positioning, and future catalysts to give you insights that go beyond the headlines.
Why Polestar Deserves Your Attention Now
Polestar, a Swedish EV manufacturer founded in 2017, has quickly carved out a niche in the premium electric vehicle market. Its lineup includes the Polestar 2 sedan, Polestar 3 and 4 SUVs, the upcoming Polestar 5 grand-touring sedan, and the Polestar 6 roadster. This diverse portfolio positions Polestar to capture multiple segments of the EV market, from sporty coupes to family SUVs.
What’s truly compelling is Polestar’s recent operational performance. In Q2 2025, the company reported retail sales of 18,049 vehicles—a 38% increase year-over-year. Even more striking, sales in the first half of 2025 jumped 51% compared to the same period in 2024. Q1 2025 sales surged an impressive 76% year-over-year, with gross margins turning positive at 7%. These figures underscore not just growth but improving profitability, a rare combination for a relatively young EV player.
Strategic Moves That Signal Long-Term Growth
Polestar’s strategic partnership with Volvo Cars is a game-changer. The upcoming Polestar 7, a premium compact SUV set for launch in 2028, will be manufactured in Kosice, Slovakia, leveraging Volvo’s established manufacturing infrastructure. This move not only expands production capacity but also enhances operational efficiency and cost control—key factors that often trip up EV startups.
Additionally, Polestar recently secured a $200 million equity investment from PSD Investment Limited, linked to Geely’s founder. This capital infusion strengthens Polestar’s balance sheet, enabling it to scale operations and accelerate its new model rollout. Given the capital-intensive nature of EV manufacturing, this financial backing is a critical vote of confidence.
What This Means for Investors
The EV market is notoriously competitive and capital hungry, with giants like Tesla, BYD, and new entrants vying for market share. Polestar’s positive sales momentum and strategic alliances put it in a strong position, but investors should remain mindful of ongoing risks—particularly around cost structure management and cash flow sustainability.
Here’s a unique insight: According to the International Energy Agency (IEA), EV sales are expected to grow by 40% annually over the next five years, driven by tightening emissions regulations and shifting consumer preferences. Polestar’s focus on premium EVs aligns well with the luxury vehicle segment’s faster-than-average EV adoption rate. This trend suggests Polestar could outperform more generalized EV manufacturers if it continues to execute flawlessly.
Actionable Advice for Investors and Advisors
- Monitor Margin Trends: Polestar’s recent positive gross margins are encouraging, but investors should track whether these improvements sustain as production scales.
- Watch Production Expansion: The Polestar 7’s manufacturing in Slovakia will be a critical milestone. Delays or cost overruns here could impact long-term profitability.
- Consider Valuation in Context: Trading under $50, Polestar offers an accessible entry point for investors looking to capitalize on EV growth without the premium valuation of Tesla or Rivian.
- Diversify Within EVs: While Polestar shows promise, balancing your portfolio with other EV or green energy stocks can mitigate sector-specific risks.
- Stay Updated on Regulatory Shifts: EV subsidies, tariffs, and trade policies can dramatically affect profitability. Polestar’s European base may offer some insulation from U.S.-China trade tensions, but global supply chain risks remain.
What’s Next?
Polestar’s trajectory suggests it could be a top contender in the premium EV segment by the end of this decade. However, investors should be prepared for volatility typical of growth-stage EV companies. Our forecast anticipates continued sales growth fueled by new model launches and manufacturing scale-up, but also advises caution around cash burn and competitive pressures.
For those looking beyond Polestar, we also recommend exploring AI stocks benefiting from the ongoing tech renaissance and onshoring trends—sectors that may offer complementary upside with different risk profiles.
In Summary: Polestar Automotive Holding UK PLC is not just a low-cost stock under $50; it’s a strategic play in the fast-evolving EV landscape with solid operational momentum and strong backing. Investors who dig deeper into its fundamentals and monitor key growth catalysts will find a compelling opportunity that few mainstream outlets are highlighting with this level of nuance.
Sources:
- International Energy Agency (IEA) Global EV Outlook 2024
- Polestar Automotive Q2 2025 Earnings Report
- Volvo Cars Corporate Announcements
Stay tuned to Extreme Investor Network for more exclusive insights that keep you ahead of the curve in the electrified future.
Source: Polestar Automotive Holding UK PLC (PSNY) Secures $200M Investment to Accelerate EV Expansion