Here’s Why Polestar Automotive Holding UK PLC (NASDAQ:PSNY) Crashed Today

We recently compiled a list of the 10 Firms Mirror Dow Jones Decline on Monday. In this article, we are going to take a look at where Polestar Automotive Holding UK PLC (NASDAQ:PSNY) stands against the other stocks.

Ten companies kicked off this week’s trading mirroring a decline on Dow Jones with a series of catalysts dampening investor sentiment. In this article, let’s explore the reasons behind their decline.

To come up with Monday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A pristine electric vehicle parked in front of a modern Gothenburg skyline.

Polestar Automotive Holding UK PLC (NASDAQ:PSNY)

Shares of Polestar Automotive declined by 6.56 percent on Monday to end at $1.14 each following news that the company recalled two vehicles produced for model year 2025 due to fluctuations in its 12-volt system that could affect the high-to-low-voltage converter module and lead to a loss of drive power.

According to a report, the company started investigating the recall condition last month after the supplier notified the company of the fluctuations.

According to Polestar, customers who are uncertain if their battery-electric vehicles have been hit by the recall are advised to run the 17-character VIN on Polestar’s consumer website.

All of the recalled vehicles were produced in China at the Luqiao CMA Super Factory in Zhejiang.

Overall PSNY ranks 4th on our list of the stocks that crashed today. While we acknowledge the potential of PSNY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PSNY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.