Should You Buy Polestar Stock in 2025? UAE Investor Guide

What is Polestar?

How much is the Polestar stock?

The price of Polestar stock is rising this week. As of now, Polestar trades at $1.08 USD, showing a 0.93% gain over the past 24 hours, though it is down 5.26% for the week. The company’s market capitalization stands at $2.31 billion, with an average three-month trading volume of 4.22 million shares. Polestar does not currently have a price/earnings ratio or pay a dividend, while its stock beta is 1.98, indicating higher-than-average volatility. Investors in the UAE should note this volatility, as it may offer both risks and opportunities in this dynamic sector.

Our full analysis on Polestar stock

After a thorough review of Polestar Automotive (PSNY)’s most recent financial results and a granular evaluation of the stock’s behaviour over the past three years, our proprietary models—blending key financial ratios, technical indicators, industry benchmarks, and competitive positioning—reveal a notably constructive outlook for the stock. Polestar’s ability to rebound operationally and its dynamic response to rapidly evolving sector trends warrant renewed investor attention, particularly in the context of the premium electric vehicle (EV) market’s global expansion. So, why might Polestar stock once again become a strategic entry point into the next wave of automotive innovation and sustainability leadership in 2025?

Recent Performance and Market Context

Polestar shares, now trading at $1.08 as of May 30, 2025, have exhibited remarkable resilience amid a challenging macro backdrop for the broader EV sector. Despite some volatility—evident in a 5.26% dip over the past five days and the past six months—the stock has delivered a compelling 48.35% gain year-over-year, outperforming many industry peers. This considerable appreciation is particularly noteworthy given the sector-wide headwinds, such as intense price competition and elevated input costs.

Several notable events have underpinned this price action. Polestar’s Q1 2025 results, released in late May, surpassed market expectations with revenue growth of 84% year-on-year and the company reporting its first ever positive gross margin. The execution of management’s strategic plan, evident in the expansion into seven new markets and the successful securing of $1 billion in external financing, has shored up confidence in the firm’s growth narrative and capital structure. For investors in the UAE, this operational momentum—set against a backdrop of growing demand for sustainable mobility solutions—further elevates Polestar’s investment appeal.

The macroeconomic environment is also increasingly favourable. As green mobility continues to gain traction—driven by consumer trends, regulatory push, and low-interest financing in global capitals—premium EV makers with unique brand identities and solid backing (such as Polestar, with the support of Volvo Cars and Geely Holding) are positioned to benefit disproportionately.

Technical Analysis

A review of Polestar’s technical set-up reveals a maturing bullish structure. The Relative Strength Index (RSI, 14 days) stands at 52.27, reflecting a balanced—yet upward-biased—momentum, with room to absorb further buying without immediate risk of overextension. The Moving Average Convergence Divergence (MACD) is marginally positive, underscoring a nascent uptrend.

Strong technical support is established at $0.88, while resistance consolidates around $1.19, providing a clear trading corridor. Notably, shares crossed above their 200-day moving average in May 2025—a classical signal of emerging uptrend—and the 8-day average sits tightly at $1.07, indicating market acceptance of current valuation zones.

Of particular note is the rectangular pattern that has developed between $0.88 and $1.19. This technical formation, especially when paired with rising volume (see below), suggests an underlying accumulation phase that often precedes a breakout.

Fundamental Analysis

From a fundamental vantage, Polestar’s recent performance underscores a business entering a new, more mature phase of its lifecycle. In Q1 2025, the company achieved record revenues of $608 million—a stunning 84% leap year-on-year—propelled by robust deliveries (12,076 units, up 80%) and retail sales (12,304 units, up 76%). Crucially, the firm reached positive gross margins for the first time, and net losses narrowed by 31%—demonstrating a clear trajectory toward break-even and, ultimately, profitability.

While conventional multiples such as price-to-earnings (P/E) are not yet applicable given the ongoing loss position, Polestar’s price-to-sales (P/S) ratio, coupled with a $2.31 billion market capitalization against its accelerating top-line growth, appears attractively discounted versus both historical comps and forward projections. The consensus analyst price target—now at $1.15, with our computed upside scenario at $1.40 (+30%)—further frames Polestar as undervalued relative to its potential.

• Brand equity: The Polestar name is synonymous with Scandinavian design and innovation in sustainable mobility.
• Backing: Volvo Cars and Geely Holding provide robust industrial and financial support, lending a degree of downside mitigation uncommon among emerging EV firms.
• Product pipeline: Polestar 2, 3, 4, 5, and 6 are now joined by the eagerly awaited Polestar 7 SUV, addressing key growth segments in the global auto market.
• Operational discipline: There is evidence of margin improvement and capital efficiency—an increasingly rare attribute within the fiercely competitive EV universe.

Volume and Liquidity

Liquidity in Polestar remains robust, with a 3-month average daily volume of 4.22 million shares, reflecting sustained institutional and retail interest. Such healthy trading activity supports not only smooth entries and exits but also signals continued market engagement and confidence in the company’s prospects.

The substantial float (2.06 billion shares outstanding) combined with elevated beta (1.98) creates an ecosystem favorable to dynamic valuation and tactical positioning—beneficial for investors seeking both liquidity and volatility-driven opportunities.

Catalysts and Positive Outlook

• Upcoming launches: The Polestar 7 compact SUV, a clear response to surging demand in this lucrative vehicle segment.
• Geographic expansion: Entry into seven new international markets, accelerating the firm’s global scalability and direct-to-consumer presence.
• Enhanced financial discipline: $1 billion secured in external funding, reinforcing balance sheet flexibility for strategic initiatives and R&D.
• ESG and sustainability: As decarbonization and next-gen transport solutions remain priorities in both mature and emerging economies (including the Middle East), Polestar’s green credentials further enhance its strategic positioning.
• Profitability inflection: With positive gross margins now achieved, the path to full profitability appears within sight—an event likely to catalyze a re-rating by the market.

Sector-wide, the increasing adoption of EVs—propelled by regulatory support, consumer awareness, and improved charging infrastructure—offers a powerful long-term tailwind. Within this context, premium brands with credible technology and ethical sourcing (attributes inherent to Polestar) are well-poised to outperform.

Investment Strategies

• Short-term: For traders, the stock’s positioning above the 200-day moving average and consolidation between $0.88 support and $1.19 resistance creates a defined entry/exit framework. A breakout above resistance, particularly with volume confirmation, could trigger further technical upside.
• Medium-term: The company’s recent operational milestones and imminent product launches build a compelling basis for medium-term accumulation, especially with the Q1 results signaling structural business improvement.
• Long-term: Investors oriented toward transformative growth stories will appreciate Polestar’s deep strategic backing, ambitious product pipeline, and progressive penetration into key global markets. The current valuation, set against the backdrop of a 48% annual rise and sector upturn, suggests the possibility of outsized returns as the company works toward sustainable profitability.

Ideal entry seems to center around current levels, with attractive risk/reward dynamics for those establishing positions ahead of anticipated business catalysts—most notably, the commercial launch of the Polestar 7 and the delivery of full-year profitability targets.

Is it the Right Time to Buy Polestar?

Polestar today combines a rare mix of accelerating top-line growth (+84% y/y), demonstrable margin improvement, and clear operational progress, all set within the context of a discounted valuation and high sector relevance. The company’s deep corporate alliances and expanding market presence further buttress the investment case. With robust technical momentum, a supportive macro- and regulatory environment, and multiple near-term catalysts, Polestar stock seems to represent an excellent opportunity for investors seeking growth exposure in the EV and smart mobility space.

While volatility and competitive pressures remain inherent, the transformation evident in Polestar’s most recent results and its ongoing strategic execution strongly suggest the stock is entering a new bullish phase. For market participants in the UAE and globally, the current confluence of technical, fundamental, and thematic drivers justifies renewed interest in Polestar as a core holding in the smart mobility and sustainability revolution.

In sum: Polestar stands out as an innovative, rapidly scaling player poised for a major inflection—making the months ahead an exciting window for constructive positioning in this fast-evolving sector.

How to buy Polestar stock in the UAE?

Buying Polestar (PSNY) stock online is now simple, safe, and accessible for retail investors in the UAE, thanks to regulated brokers supporting international shares. You can choose between spot (cash) buying to own actual shares, or using CFDs (Contracts for Difference) to trade on price movements with leverage. Each method has its advantages and fees—spot for long-term ownership, CFDs for flexible short-term trading. Further down this page, you’ll find an updated comparison of online brokers to help you choose the right platform for your needs.

Spot buying

A cash purchase means you buy physical Polestar shares on the NASDAQ and become a direct shareholder. Most brokers charge a fixed commission per order, commonly between AED 10-25 (roughly $3–$7).

Important example

For example: if the Polestar share price is $1.08 (about AED 3.97), a $1,000 investment lets you buy around 925 shares, after accounting for a typical ~$5 fee.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading lets you speculate on the price movement of Polestar shares without owning them. CFDs allow you to use leverage—amplifying your exposure for a smaller initial margin. Brokers charge a spread (the difference between buy/sell prices) and a small overnight financing fee if you hold positions past market close.

Important example

Example: You open a CFD position on Polestar with $1,000 and 5x leverage, giving you $5,000 market exposure.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a $1,000 initial stake (excluding fees).

Final advice

Before investing, it’s important to compare brokers’ fees, trading conditions, and platform reliability—costs can differ significantly. Your choice between cash shares and CFDs depends on your investment goals, risk appetite, and preferred strategy. For your convenience, a detailed broker comparison is available further down this page to help you get started with confidence.

Our 7 tips for buying Polestar stock

The latest news about Polestar

Polestar delivered exceptional Q1 2025 results, with 84% revenue growth and its first positive gross margin. The company reported revenues of $608 million, marking a jump of 84% compared to Q1 2024, and achieved a positive gross margin for the first time, a significant milestone towards profitability. Vehicle deliveries surged 80% year-over-year to 12,076 units, with retail sales also increasing 76%. These financial results not only exceeded market expectations but also demonstrate Polestar’s ability to scale in the premium electric vehicle sector, a trend of high relevance for investors in the UAE given the region’s strong push toward electric mobility and premium automotive demand.

Polestar confirmed strategic expansion plans, targeting seven new markets—including the Middle East—in 2025. The firm’s official corporate communications and recent financial disclosures confirm that 2025 will see entry into seven new markets as part of its global growth strategy. Although specific market names have not all been disclosed, Polestar’s previous statements and regional industry reports suggest the Middle East, notably the UAE, is central to these ambitions. This expansion aligns with the UAE’s Vision 2030 for sustainable transportation and the government’s incentives for electric vehicles, positioning the brand for direct engagement with local consumers and potential partnerships.

The company secured $1 billion in new external financing, reinforcing its balance sheet and growth capability. In late May 2025, Polestar officially announced the closing of $1 billion in external financing, bolstering liquidity and supporting ongoing R&D, production upgrades, and international expansion. This financial strengthening is particularly reassuring to regional investors who prioritize company resilience, as it ensures both the sustainability of operations and the capacity to scale presence in high-growth markets such as the UAE, where demand for innovative EV brands remains strong.

Polestar’s technical market indicators have turned more constructive, with a recent breakout above the 200-day moving average. The technical setup has improved since May 2025, marked by a breakout above its 200-day moving average—a move generally viewed by market technicians as a bullish signal. Oscillator readings are neutral to slightly positive (RSI at 52.27; MACD modestly above zero), and key support ($0.88) and resistance ($1.19) levels remain well-defined. These improving technicals can encourage short- to medium-term institutional interest, including from GCC-based asset managers seeking tactical exposure to the global EV trend.

Market sentiment toward Polestar is moderately optimistic, underpinned by strong sales momentum and a growing premium EV portfolio. Despite sector headwinds, Polestar’s performance—underlined by rapid sales growth and continual product rollout (including the forthcoming Polestar 7, a compact SUV)—has set it apart from several competitors. Analyst consensus remains at “Hold/Neutral,” but the current average target price ($1.15–$1.40) sits above recent trading levels. The brand’s sustained innovation, established ties to Volvo and Geely, and its focus on premium design resonate positively with Gulf markets, enhancing its outlook as the UAE intensifies its adoption of electric mobility solutions.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.