$Polestar Automotive(PSNY)$the only way for the stock price to go below the base price of 10 is either (a) panic selling or (b) shareholders having bought the stock at below 10 (& then selling it off for marginal profit) or both. In the case of (b), it has been reported that GGPI Sponsors & PIPE investors have purchased the shares before-merger at 9.09 apiece. Since the lowest price for PSNY stock reached about 8.60+, there's speculation that there could be shares floated out in the market that was bought at a lower price than 9.09 pre-merger. Let's not forget that about the 25% share redemption that occurred before merger, which could also be floated out there for below 10 apiece as well.
Referencing the number of publicly floated shares with the average trading volume, nonetheless, we could perhaps take heart that price volatility is likely due to the trades made by some of the above-mentioned shareholders (all things being equal) - most investors are holding rather than selling.
This is NOT financial advice but more of trying to make sense of the craziness in the PSNY stock price (for myself), which I'm sharing with the community. Please do your own DD & I welcome contributions & corrections so that we can all learn together.
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