VLVLY - Polestar's Uphill Battle Against Tesla And Market Conditions: Why Barclays Downgraded To Underweight | Benzinga
Barclays analyst Dan Levy downgraded Polestar Automotive Holding UK Limited (NASDAQ: PSNY) to Underweight from Equal Weight, lowering the price target to $3 from $5.
Levy downgraded the stock, reflecting demand challenges, dilution concerns, and tougher competition.
PSNY is primarily bearing the brunt of a deterioration of EV demand, amplified by the price discounting by Tesla, Inc. (NASDAQ: TSLA), creating a challenging environment, the analyst cautioned.
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While the price cuts have impacted the broader industry, arguably the more significant impact has been to pure-play EV companies, the analyst adds.
The impact is especially challenging for PSNY as the PS2 model, ...