Why Polestar Automotive (PSNY) Stock Is Nosediving

Polestar Automotive Holding Uk Plc PSNY shares are trading lower by 7.9% to $2.67 Wednesday morning. The company on Tuesday filed for a mixed shelf offering of up to $1 billion in stock and warrants.

Polestar says the net proceeds from the sale of securities will primarily be used for general corporate purposes, such as working capital, capital expenditures, research and development and investments.

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Mixed shelf offerings can dilute the ownership stake of existing shareholders. When new shares are introduced into the market, each existing share represents a smaller portion of the company, reducing its value per share.

According to data from Benzinga Pro, PSNY has a 52-week high of $8.25 and a 52-week low of $2.16.