Polestar (PSNY) shares are extending declines on Friday morning even after the electric vehicle specialist announced the launch of a new service it’s calling “Fleet Telematics.” Shares popped more than 7% in intraday trading on Thursday, Oct. 16, before closing up a modest 0.4%. Polestar warrants (PSNYW) closed up a 54.4% in a volatile day of trading.
According to PSNY’s press release, Fleet Telematics is a connected service offering real-time EV fleet data, predictive insights, and seamless integration without extra hardware.
Polestar stock is down some 36% versus its year-to-date high. Warrants are down more than 67% off theirs.
How Might Fleet Telematics Help PSNY Stock?
The launch of Fleet Telematics could prove constructive for PSNY stock as it stands to strengthen the company’s B2B appeal.
Integration with platforms like Geotab and Echoes as part of the new service essentially position Polestar as a compelling partner for fleet operators seeking cost efficiency and sustainability.
This could help diversify the firm’s revenue and improve its margins over time.
By reducing hardware dependencies and enabling seamless data integration, the launch will help PSNY lower onboarding friction for enterprise clients, a key advantage in competitive fleet market.
If adoption scales across geographies, it could support recurring revenue streams and improve long term visibility of the EV stock.
Polestar Shares Still Aren’t a Conviction Buy
According to Fintel, short interest in Polestar shares remains elevated, tempting speculative traders with possibility of a short squeeze. But fundamentally, that short interest is a major red flag.
The automaker has recorded persistent losses, faces tariffs-related headwinds, and struggles with scale in a crowded electric vehicle market.
More importantly, with PSNY shares trading below $1 at writing, the Swedish firm risks Nasdaq delisting while dilution risk also looms large as Polestar seek fresh capital to support operations.
Caution is warranted in owning this EV stock also because analysts rate it a “Moderate Sell” with two analysts giving it “Strong Sell” ratings.
In short, until Polestar proves operational discipline and margin expansion, PSNY is just a penny stock with low liquidity and high volatility, suitable only as a speculative bet, not a conviction buy.
