Nov 14 (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.