Recently, Polestar Motors announced on its official website that due to failure to submit its annual report for the fiscal year ending December 31, 2023 in a timely manner, it has received a notice from the Nasdaq Stock Exchange in New York stating that Polestar Motors does not meet the periodic financial report submission requirements for continuous listing as stipulated in NASDAQ Listing Rules 5250 (c) (1).
According to the listing rules of NASDAQ, from the date of notification, Polar Star Motors will have 60 days to submit a compliance plan to NASDAQ. If NASDAQ accepts the plan, Polar Star Motors may receive an additional period of up to 180 days from the due date of the annual financial report, which is until November 11, 2024, to re qualify for continued listing.
The notice from NASDAQ will not immediately affect the listing or trading of Polestar Auto's stock. However, if Polestar fails to restore compliance within the specified time frame, its stock will be delisted from NASDAQ.
Polestar stated that it is working hard to submit the company's annual report as soon as feasible, and will release the preliminary unaudited financial and operational results for the first quarter of 2024.
Polestar is a global high-performance electric vehicle brand jointly developed by Volvo and Geely in 2017, and was officially listed on the NASDAQ Stock Exchange in New York on June 28, 2022 local time. However, after the listing of Polar Star Motors, its stock price did not perform well, dropping from the opening price of $11.29 on the day of listing to the closing price of $1.24 on May 17th Eastern Time, with a cumulative decline of 89%.
In terms of sales, in 2022, the global sales of Jixing Automobile increased by 80% year-on-year to 51000 units, but the year-on-year growth rate slowed to 6% in 2023, with global sales of approximately 54600 units that year. In April of this year, Polestar Motors stated that the electric vehicle industry was working hard to cope with a slowdown in demand. The company's delivery volume in the first quarter decreased by 40% to 7200 units, compared to 12076 units sold in the same period last year.
The Chinese market is the largest new energy vehicle market in the world, with a market share of over two-thirds. Since last year, Polestar has been vigorously developing the Chinese market and stated that 2024 will be the "first year" for Polestar to return to the Chinese market. But this year, the price war in the Chinese market has become increasingly fierce, and Jixing Motors has not caused any waves in the Chinese market. According to data, in the first four months of this year, the cumulative sales of Polestar Motors in China were less than 1000 units.
In February this year, Volvo announced a reduction in its stake in Polestar Motors, with plans to reduce its approximately 48% stake to 18%. Geely Sweden Holdings, a subsidiary of Geely Holdings, is the main transferee. At the same time, Volvo has confirmed that it will no longer provide funding to Polestar in the future. Geely Holdings will take over providing operational and financial support to Polestar and expand synergies in basic technology, supply chain, manufacturing, and other areas.