Terrible news struck for electric vehicle stock Polestar (NASDAQ:PSNY) today as Hertz Global (NASDAQ:HTZ) announced it was pulling the plug on plans to buy tens of thousands of new Polestar electric vehicles to augment its fleet. The news sent Polestar plummeting, down over 6% in Monday morning’s trading session.
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Hertz took a look at the market and noted that electric vehicles, among their many and various problems, also seem to have a huge problem keeping their resale value. The collapse in said value seen last year was one of the biggest reasons that Hertz pulled out of the Polestar deal altogether. Back in 2022, Hertz planned to buy 65,000 Polestar vehicles over the course of five years, though once it saw what happened to the resale values on said vehicles, decided that it wasn’t the course of action to take. Polestar wasn’t the only one impacted here, though; reports note that Hertz also pulled out of a plan to buy around 100,000 Tesla (NASDAQ:TSLA) vehicles.
Volvo to Stop Pumping Money into Polestar
The hits just kept on coming for Polestar, which also had to endure a particular piece of bad news when one of its biggest investors, Volvo (OTC:VLVLY), decided to stop pumping money into Polestar after Polestar once again missed delivery targets for 2023, and targets that it had already reduced once. That, coupled with a growing malaise for the sector in general after so many electric vehicles become almost-rolling human-sized refrigerators in a recent cold snap, suggests little good for the electric vehicle sector.
Is PSNY a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PSNY stock based on three Buys and two Sells assigned in the past three months, as indicated by the graphic below. After a 71.75% loss in its share price over the past year, the average PSNY price target of $4.03 per share implies 142.04% upside potential.
