In a recent development, Polestar Automotive Holding UK PLC PSNY has announced that Geely Sweden Holding is potentially becoming a new shareholder. This move is part of a broader strategy that could see a shift in Polestar’s ownership structure.
What Happened: In a recent press note, Geely Sweden Holding, a subsidiary of Geely Holding Group GELYF GELYY, is set to become a direct shareholder in Polestar, a Swedish electric performance car brand. The potential change in Polestar’s ownership structure is being evaluated by Volvo Cars VLVLY, which could result in a redistribution of shares to its shareholders, with Geely Sweden Holding as the primary recipient.
Volvo Cars will remain a strategic partner in various areas, including research and development, manufacturing, after-sales, and commercial operations. This development is a significant step for Polestar, which has been making strides in its electric model lineup, global sales and service network, and diversified manufacturing footprint.
CEO Thomas Ingenlath expressed optimism about the future, stating, “With our growing line-up of exclusive, performance cars, Polestar is in one of the most promising phases of its development.”
Why It Matters: This potential change in ownership comes at a crucial time for Polestar. The company has been navigating a challenging market, with competitors resorting to discounts to drive sales. Despite this, Ingenlath remained positive about the company’s sales outlook for 2024.
However, amid these challenges, Bernstein analyst Daniel Roeska suggested that Polestar might be more beneficial to go private. The potential entry of Geely Sweden Holding as a new shareholder could potentially impact the company’s future direction.
Geely has also been making significant moves in the EV market. Its EV arm, Zeekr, aims to double its car deliveries in 2024, indicating a strong push in the EV sector. This aligns with Polestar’s focus on electric performance cars, potentially signaling a strategic alignment between the two companies.
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