The Swedish premium brand Polestar goes to Nasdaq

The Swedish premium electric brand Polestar, a subsidiary of 48 percent of the other Swedish premium brand, Volvo, makes its stock exchange debut on Nasdaq today. The business value of about $ 20 billion seems high. The parent company Volvo is worth 30 billion euros or about 32 billion dollars. But compared to other electric car manufacturers, Polestar does not seem too expensive.

Polestar started in 1996 and spent years transforming Volvo models into race cars. In 2015, the Swedish car manufacturer, which has since been acquired by the Chinese car group Geely (an ownership interest of 84%), bought the company. Since then, Polestar has been working on its own models. Polestar 1 (price: $ 155,000) will not be mass-produced, but Polestar 2 will be (approximately $ 50,000 to $ 60,000). Polestar 3 was to be launched this year and Polestar 4 will be next year.

In April, the company sold in 23 countries on three continents. The cars are made in China and the United States. According to a presentation to investors in May, production of Polestar 2 is also possible at a factory in Europe. A name is not mentioned. In a presentation last year, Ghent was mentioned as a production center.

Polestar expects strong growth (se balancetal† The company is still loss-making, but that would no longer be the case from 2024. Polestar expects the premium electric car market to grow from total global volume sales of 1.4 million vehicles in 2020 to 4.9 million vehicles in 2025. With an average price per sold model of 55,000 USD to 65,000 USD in the premium segment, the total market value is approx. USD 300 billion in revenue. Polestar hopes their market share in the premium electric segment can grow from 0.2 percent in 2021 to 2.3 percent in 2025. The company may also demand synergy with Chinese carmaker Geely. Volvo and Geely employ 20,000 people in research and development and design. Sustainability is central to Polestar. The car brand can also rely on Volvo’s concessions for service and maintenance.

Turbulent stock market climate

Today, Friday, June 24, Polestar makes its entry on the Nasdaq Stock Exchange in New York. The operation was announced last autumn, but comes at a time when the stock market climate is turbulent. Existing shareholders want to raise $ 890 million. The company value of approximately $ 20 billion represents about three times the expected revenue in 2023.

It seems hard, but two other electric car manufacturers listed in the US are higher but are currently achieving lower production volumes. Rivian makes electric vans and SUV models and has been listed on Nasdaq since November last year. Car production started on May 9 this year. Rivian expects to build 25,000 cars this year. The market value is $ 26.5 billion, but since the listing, 71 percent of the market value has evaporated.

Another US automaker, Lucid Motors, was listed in early 2021. The company expects to make 12,000 to 14,000 cars this year. 360 cars had been delivered to customers at the time of the quarterly financial announcement in May. Lucid Motors’ market capitalization is $ 32 billion, almost doubling since its IPO.

Polestar makes several cars. In addition, they are delivered. According to figures from the Belgian vehicle association Febiac, the number of new Polestar registrations in Belgium this year until the end of May was 778 cars against 417 in the same period last year.

Polestar started in 1996 and spent years transforming Volvo models into race cars. In 2015, the Swedish car manufacturer, which has since been acquired by the Chinese car group Geely (an ownership interest of 84%), bought the company. Since then, Polestar has been working on its own models. Polestar 1 (price: $ 155,000) will not be mass-produced, but Polestar 2 will be (approximately $ 50,000 to $ 60,000). Polestar 3 was to be launched this year, and next year Polestar 4. In April, the company sold in 23 countries on three continents. The cars are made in China and the United States. According to a presentation to investors in May, production of Polestar 2 is also possible at a factory in Europe. A name is not mentioned. In a presentation last year, Ghent was mentioned as a production center Polestar expects strong growth (see balance sheet figures). The company is still making a loss, but that would no longer be the case from 2024. Polestar expects the premium electric car market to grow from total global volume sales of 1.4 million vehicles in 2020 to 4.9 million vehicles in 2025. With a average price per sold model of 55,000 USD to 65,000 USD in the premium segment, the total market value is approx. USD 300 billion in revenue. Polestar hopes their market share in the premium electric segment can grow from 0.2 percent in 2021 to 2.3 percent in 2025. The company may also demand synergy with Chinese carmaker Geely. Volvo and Geely employ 20,000 people in research and development and design. Sustainability is central to Polestar. The car brand can also rely on Volvo’s concessions for service and maintenance. Today, Friday, June 24, Polestar makes its entry on the Nasdaq Stock Exchange in New York. The operation was announced last autumn, but comes at a time when the stock market climate is turbulent. Existing shareholders want to raise $ 890 million. The company’s value of about $ 20 billion represents about three times the expected revenue in 2023. It seems hard, but two other US-listed electric car manufacturers are trading higher, but are currently achieving lower production volumes. Rivian makes electric vans and SUV models and has been listed on Nasdaq since November last year. Car production started on May 9 this year. Rivian expects to build 25,000 cars this year. The market capitalization is $ 26.5 billion, but since the listing, 71 percent of the market capitalization has evaporated. Another US automaker, Lucid Motors, went public in early 2021. The company expects to make 12,000 to 14,000 cars this year. 360 cars had been delivered to customers at the time of the quarterly financial announcement in May. The market value of Lucid Motors is $ 32 billion, almost doubling since listing. Polestar makes several cars. In addition, they are delivered. According to figures from the Belgian vehicle association Febiac, the number of new Polestar registrations in Belgium this year until the end of May was 778 cars against 417 in the same period last year.

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