Polestar Welcomes Geely’s Long-Term Commitment to Its Development and Growth as an Independent Exclusive Performance Brand

Rhea-AI Summary

Polestar Automotive Holding UK PLC (Nasdaq: PSNY) welcomes Geely Sweden Holding as a potential new shareholder, with Volvo Cars evaluating a potential adjustment to its shareholding. The company has made significant progress in developing an all-electric model line-up, global sales and service network, and a diversified manufacturing footprint. Polestar announced a strengthened business plan in November 2023 to drive higher margins and cash flow, reducing its expected external funding need to approximately $1.3 billion until targeted cash flow break-even in 2025.

Insights

Market Research Analyst

The potential adjustment in shareholding structure at Polestar Automotive, with Geely Sweden Holding becoming a direct new shareholder, suggests strategic realignment within the automotive industry. This move could signal a consolidation of expertise and resources, which may enhance Polestar's competitive edge, particularly in the electric vehicle (EV) sector. Given the current market trends, where EV adoption is accelerating, Polestar's focus on developing an all-electric model lineup is timely and aligns with consumer demand shifts. Moreover, the company's efforts to streamline operations and reduce funding needs reflect a proactive approach to achieving profitability amidst a capital-intensive industry.

The strengthened business plan indicating a path to profitability by 2025, with reduced external funding requirements, is a critical factor for investors. It demonstrates fiscal discipline and a strategic vision that could potentially lead to an improved valuation of the company. The collaboration with Volvo Cars in R&D and other areas could lead to innovations and efficiencies that might not be achievable independently, further bolstering Polestar's market position.

Financial Analyst

The announcement of Volvo Cars considering distributing shares to its shareholders, with Geely Sweden Holding as the primary recipient, has implications for investor sentiment and stock liquidity. This redistribution of shares could lead to changes in investor base and potentially impact the stock's volatility. The strategic partnership with Volvo Cars, which remains intact across multiple operational areas, is crucial as it ensures continuity in Polestar's growth trajectory while leveraging Volvo's established market presence and expertise.

From a financial perspective, the reduction in expected external funding need to approximately $1.3 billion is significant. It suggests that Polestar's management has effectively controlled costs and improved margins, which are essential indicators of a company's financial health. Investors will likely scrutinize the company's ability to secure the additional external funding required, as this will be a determinant of Polestar's capacity to sustain its operations and execute its business plan.

Automotive Industry Analyst

The strategic movements within Polestar, particularly the anticipated synergies with Geely on future-oriented technologies, indicate a strong focus on innovation in the EV space. The automotive industry is rapidly evolving and Polestar's emphasis on performance cars within the electric segment positions it to capitalize on a niche market. The ramp-up of production and commencement of sales in new regions, such as China, Europe and Australia, reflect the company's aggressive expansion strategy.

Furthermore, the expected start of customer deliveries for Polestar 3 this summer represents a milestone in the company's product timeline. The success of new model launches is pivotal for Polestar's growth and market share acquisition. The ability to maintain production momentum and meet delivery timelines will be a key performance indicator watched closely by stakeholders.

GOTHENBURG, Sweden--(BUSINESS WIRE)-- Polestar Automotive Holding UK PLC (Nasdaq: PSNY), the Swedish electric performance car brand, welcomes Geely Sweden Holding as a potential direct new shareholder. Volvo Cars is evaluating a potential adjustment to its shareholding in Polestar including a distribution of shares to its shareholders, with Geely Sweden Holding being the primary recipient. Volvo Cars will remain a strategic partner in areas across R&D, manufacturing, after sales and commercial.

Polestar all-electric line-up (Photo: Business Wire)

Polestar has made significant progress in developing an all-electric model line-up, a global sales and service network and a diversified manufacturing footprint. Polestar announced a strengthened business plan in November 2023 that set a clear path to profitability. With business actions to manage costs, drive higher margins and cashflow, Polestar reduced its expected external funding need to approximately $1.3 billion until targeted cash flow break-even in 2025 and is well advanced on securing the additional external funding required.

Thomas Ingenlath, Polestar CEO, says: “With our growing line-up of exclusive, performance cars, Polestar is in one of the most promising phases of its development. We have successfully ramped up production and started sales in China, Europe and Australia of Polestar 4 and Polestar 3 is expected to start first customer deliveries this summer. We look forward to continued cooperation with Volvo Cars as well as benefiting from even greater synergies with Geely on future orientated technologies.”

About Polestar

Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand determined to improve society by using design and technology to accelerate the shift to sustainable mobility. Headquartered in Gothenburg, Sweden, its cars are available online in 27 markets globally across North America, Europe and Asia Pacific.

Polestar plans to have a line-up of five performance EVs by 2026. Polestar 2, the electric performance fastback, launched in 2019. Polestar 3, the SUV for the electric age, launched in late 2022. Polestar 4, the SUV coupé transformed, is launching in phases through 2023 and into 2024. Polestar 5, an electric four-door GT and Polestar 6, an electric roadster, are coming soon.

The Polestar 0 project supports the company’s ambitious goal of creating a truly climate-neutral production car by 2030. The research initiative also aims to create a sense of urgency to act on the climate crisis, by challenging employees, suppliers and the wider automotive industry, to drive towards zero.

Forward-Looking Statements

This press release contains statements that are not historical facts, but rather forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Polestar or its management believes or anticipates may occur in the future. All forward-looking statements are based upon, as applicable, our current expectations, various assumptions and data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialise or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including those risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Polestar’s Form 20-F, and other documents filed, or to be filed, with the U.S. Securities and Exchange Commission by Polestar. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any such statements in light of new information or future events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131152601/en/

Bojana Flint

Head of Investor Relations

bojana.flint@polestar.com

Theo Kjellberg

Head of Corporate PR

theo.kjellberg@polestar.com

Tanya Ridd

Global Head of Communications & PR

tanya.ridd@polestar.com

Source: Polestar Automotive Holding UK PLC

FAQ

What is the ticker symbol for Polestar Automotive Holding UK PLC?

The ticker symbol for Polestar Automotive Holding UK PLC is PSNY.

What is the potential adjustment Volvo Cars is evaluating regarding its shareholding in Polestar?

Volvo Cars is evaluating a potential adjustment to its shareholding in Polestar, including a distribution of shares to its shareholders, with Geely Sweden Holding being the primary recipient.

What was announced in Polestar's strengthened business plan in November 2023?

Polestar announced a strengthened business plan in November 2023 that set a clear path to profitability, with actions to manage costs, drive higher margins and cash flow, reducing its expected external funding need to approximately $1.3 billion until targeted cash flow break-even in 2025.

What progress has Polestar made in terms of its model line-up and manufacturing footprint?

Polestar has made significant progress in developing an all-electric model line-up, global sales and service network, and a diversified manufacturing footprint.

Who is the CEO of Polestar Automotive Holding UK PLC?

The CEO of Polestar Automotive Holding UK PLC is Thomas Ingenlath.