Polestar (NASDAQ:PSNY) stock is falling on Thursday shortly after the company made its public debut following a special purpose acquisition company (SPAC) merger.
So what’s behind the fall of PSNY stock today? It looks like a note from Bernstein Research is dragging shares of the electric vehicle (EV) down today. According to it, the company is short $650 million that it needs to get through the rest of the year.
This note says that Polestar will require $1.7 billion to continue operations in 2022. However, the company only raised $890 million from its recent SPAC merger. That’s where the additional $650 million required comes from.
Bernstein Research says that Polestar only needs to raise $600 million of this to keep going. Its options for further funding include China’s Zhejiang Geely Holdings, Volvo, or possibly even both of them, Bloomberg notes.
News of the additional funding needed has PSNY seeing a decent amount of trading today. As of this writing, more than 3.3 million shares have changed hands. That’s closing in on the company’s daily average trading volume of about 4 million shares.
Polestar is an EV company based out of Sweden. It started out as a brand in 1996 as a partnership between Volvo Cars and Flash/Polestar Racing. It was acquired by Volvo in 2015, which was acquired by Zhejiang Geely Holdings in 2010.
PSNY stock is down 7.1% as of Thursday morning. The company’s shares have been sliding since going public earlier this week.
Investors looking for more of the most recent stock market news are going to want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.