Polestar Stock Drops Nearing 52-Week Low as Q3 Retail Sales Decline Outside US

Polestar Automotive Holding UK Limited (NASDAQ:PSNY) shares are trading lower on Thursday after the company reported a decline in third-quarter retail sales excluding its U.S. business.The company estimated third-quarter 2026 retail sales at 14,371 cars, up 1% year over year. For the first nine months of 2026, estimated retail sales totaled 44,790 cars, up 0.6% from the prior-year period.Excluding the U.S. business, third-quarter retail sales fell 8% year over year to 12,211 cars, while nine-month sales declined 0.5% to 40,773 cars from 40,968 cars. • Polestar Automotive shares are approaching critical lows. Why did PSNY hit a new low?Polestar Highlights New Model LaunchesPolestar CEO Michael Lohscheller said the company delivered its strongest third quarter despite tougher market conditions.He highlighted the start of Polestar 5 customer deliveries as an important milestone and said the new Polestar 4 SUV expands the company’s lineup and helps it reach new customers in the D-SUV segment, which Polestar described as the largest and most dynamic segment of Europe’s premium EV market.Recent Earnings SnapshotIn September, Polestar reported second-quarter and first-half 2026 results that were hurt by intensifying competition and regulatory challenges, particularly in the U.S.The company posted mixed second-quarter results, with revenue and adjusted profitability weakening. Revenue declined 8.1% year over year to $727 million from $791 million, pressured by lower retail volumes, pricing pressure and restructuring costs in the U.S.PSNY Technical Analysis: Downtrend and Key LevelsFrom a trend perspective, Polestar remains in a steep downtrend: the stock is trading 22.1% below its 20-day SMA ($6.87) and 67.7% below its 200-day SMA ($16.57). The bearish backdrop is reinforced by the 20-day SMA sitting below the 50-day SMA, and the death cross that formed in July (50-day SMA below the 200-day SMA).Momentum is extremely stretched, with RSI at 15.37 — deeply oversold — which often signals selling pressure has become crowded and bounces can happen quickly even inside a broader downtrend. The trade-off is that oversold readings can persist when the longer-term trend is this weak, so traders typically look for stabilization and reclaiming nearby moving averages before trusting a reversal. Key Resistance: $6.87 — Aligns with the 20-day SMA, a nearby level the stock would need to reclaim to suggest the selloff is easing. Key Support: $5.45 — Sits near the 52-week low zone, where buyers previously showed up. Polestar vs. Consumer Discretionary Sector PerformancePolestar is underperforming in its Consumer Discretionary peer group today, falling while the sector is up. Consumer Discretionary ranks six out of 11 sectors (mid-tier) right now, so the stock’s weakness looks more company-specific than sector-driven.Zooming out, the sector has been soft recently, down 2.26% over the past 30 days and down 4.97% over the past 90 days, which can keep pressure on higher-beta discretionary names. Still, with Energy up 2.65% and Consumer Staples up 2.06% today while Technology is down 1.94%, the market’s tone reads defensive — and Polestar is reacting like a risk asset inside that rotation. See More: Top Momentum Stocks How Polestar Ranks On Momentum And Trend SignalsBelow is the Benzinga Edge scorecard for Polestar, highlighting its strengths and weaknesses compared to the broader market: Momentum: Weak (Score: 0.41) — The stock shows very weak relative strength, lining up with its deep drawdown and position well below key moving averages. The Verdict: Polestar’s Benzinga Edge signal reveals weak momentum, which fits the stock’s persistent downtrend despite the upbeat sales update. For longer-term investors, the setup argues for patience until price starts reclaiming key trend levels and momentum improves.PSNY Stock Price Action TodayPSNY Stock Price Activity: Polestar shares were down 1.61% at $5.49 at the time of publication on Thursday, according to Benzinga Pro data. Read Also: EXCLUSIVE: TSMC Plans Up to $64 Billion in Capex and Still Isn’t ‘Building Enough,’ Says Applied Materials Veteran Photo via Shutterstock