Polestar completed a rollercoaster after its debut on the stock market

Polestar completed a rollercoaster after its debut on the stock market

Polestar’s share price rose 16 percent on its first day of listing. However, shareholders briefly had reason to be satisfied.

On Monday, the next trading day after its debut, Polestar lost 15 percent of its opening price. This means that it actually gained only 1 percent in these two days.

Is there anything to fear? Not at all, because history knows cases of large drops. In October 2018, Aston Martin made its debut on the London Stock Exchange – a brand, it would seem, indeed, with tradition, completely British. The opening price was £19 per share. Later that day, the price dropped below £18, and in August 2019 a single Aston was available for purchase for just $3.70. It was only at this level that a continuous cycle of rate increases began.

Why did investors react this way? After all, their decisions are influenced by everything that happens in the world. So in the context of Polestar, we are talking about a broken supply chain, more expensive equipment and raw materials necessary for the production of electric cars.

As reported by Bloomberg, not only Polestar is in trouble. American electric car maker Rivian made its debut on the stock market in November. Today, the company’s shares are worth 64 percent. less than the first time. Could it be the same procedure as in the case of Aston Martin?

Interactive Brokers chief strategist Steve Sosnick says in an interview with Bloomberg that the entire EV sector is overvalued. If he is right, then the stock market of other electric car manufacturers could end up in the same way as Polestara or Riviana. It will be so, time will tell.