Why Is Polestar (PSNY) Stock Down 7% Today?

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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 Cars, or possibly even both of them, Reuters notes.