Polestar Struggles Amid Intense Competition; Bernstein Suggests Privatization

Electric vehicle maker Polestar, co-owned by Volvo and Geely, faces financial difficulties and slow growth, leading Bernstein to suggest a return to private ownership.

• Polestar, the electric vehicle maker co-owned by Volvo and Geely, has been struggling financially due to intense competition and slow growth, delivering only 54,600 vehicles in 2023, falling short of its target of 60,000.
• Bernstein, a research and brokerage firm, suggests that it would make more sense for Polestar to be taken private by Volvo and Geely, rather than remaining a stand-alone equity.
• Polestar's stock has fallen over 62% in the past 12 months and is down over 85% from its all-time highs.
• Polestar is set to begin European orders for its new Polestar 4 SUV coupe at the end of January and kickstart production of the Polestar 3 early this year after a delay.
• Polestar reported an operating loss of $735 million for the first nine months of 2023 and revenue of $1,844.4 million.

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