How Do You Solve a Problem Like Polestar?

If you're thinking of getting a Polestar, you might want to keep in mind that the premium EV brand may not be a stand-alone for much longer, if predictions from auto industry analysts and academics are anything to go by. Polestar has operated independently of Volvo since 2017, but both still have production facilities next to each other in Torslanda, Sweden, and both have been ultimately owned since 2010 by automotive giant Geely of China. “I can easily imagine that there’ll be a conversation going on which considers making Polestar a sub-brand of Volvo, or a sub-brand of Geely,” says Palmer, who has four decades of experience in the automotive industry and was also formerly CEO of Aston Martin Lagonda. You’ve got huge marketing costs without having the economies of scale.” And Polestar—which states it has sold 170,000 cars since it began—isn’t generally viewed as a stand-alone brand, says Palmer: “I think most people in the industry view Polestar as the EV version of Volvo, so having it as a separate brand doesn’t make any sense.” After Volvo cut its funding earlier this year, Polestar secured a $950 million three-year loan from a banking syndicate led by BNP Paribas, and at the end of August raised a further $300 million in the form of a one-year revolving term loan facility. However, following losses deepening to $1.46 billion amid slowing EV demand, Ingenlath resigned from Polestar on August 27, although his LinkedIn page continues to state he’s still the Polestar CEO; his contract runs until October 1.