AUTONEWS

Polestar(controlled by Volvo and Geely) is on the verge of collapse

Despite all the promises and having at your side the experienced Swedish Volvo and the powerful Chinese Geely, which guarantees you access to production techniques and style, on the one hand, and platforms for trams, engines, software and batteries, on the other, Polestar is going through a difficult period from which it may not recover. After selling just 51,500 units in 2022, far from the 65,000 that were the objective, it repeated its poor performance in 2023. Of the 80,000 vehicles originally planned, only 54,600 were transacted, with the 4th quarter being the worst of the year. Hence, analysts are questioning its future.

Based on analysis by Daniel Roeska, from Bernstein, Bloomberg anticipates that Volvo and Geely – where the former is fully controlled by the latter – need to take Polestar public if they want it to survive. Stating that this electric vehicle manufacturer is on the verge of collapse, Bloomberg recalls that Polestar is listed on the stock exchange, on the Nasdaq, but the reality is that 88% of the shares are owned (directly or indirectly, through Volvo) by Geely, which also holds 93% of the voting power.

Polestar CEO Thomas Ingenlath argues that the company continues to evolve towards greater sustainability. “It is in our interest that the company does not remain eternally dependent on shareholder funds”, recognizes Ingenlath. It should be remembered that Polestar recently announced that it would need an injection of 1.3 billion dollars to survive until 2025, funds that will come mainly from Geely and, given its size, Volvo.

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