Swedish carmaker Polestar has got the whole auto world talking following a Superbowl ad that took shots at both Tesla and Volkswagen.
Sept. 28, 2022
Swedish-based electric car manufacturer Polestar catapulted itself into the public eye in spectacular fashion in February following a polarizing ad spot during the Superbowl. The company only needed 30 seconds to get its point across, promising an uncompromising approach to making vehicles while also taking some notable shots at rivals Tesla and Volkswagen.
With more people talking about the company than ever before, we’re all no doubt wondering how we can buy shares in Polestar. Before we answer that though, let’s take a little look under the hood first.
What does Polestar do?
Polestar is currently majority-owned by fellow Swedish auto manufacturer Volvo following a purchase in 2015. The company is headquartered in Gothenburg, Sweden, and develops electric performance cars. Its Superbowl showing was designed around the Polestar 2, the first car of any kind to have an operating system exclusively powered by Google — a company that knows a thing or two about tech.
When can I buy Polestar stock?
Polestar went public on June 24, 2022. It debuted on the market via a SPAC, having signed an agreement to do so with Gores Guggenheim, Inc. the year previous. Once the merger was formally approved by Gores Guggenheim’s shareholders, Polestar was able to begin trading.
It trades under the ticker symbol PSNY on the Nasdaq exchange. Polestar’s shares ended their first day of trading at $13, up just under 16% from the SPAC’s final closing price on June 23 before the acquisition. CEO Thomas Ingenlath stated that the funds acquired from going public would be used to put into place a three-year plan aimed at profitability.
Currently, however, the stock sits almost 60% off the all-time highs seen the day of its SPAC merger following a rotation away from tech and growth stocks amid rising inflation and recessionary fears.
We don’t know too much about Polestar’s overarching financials, as it escapes the rigorous reporting standards by debuting via SPAC as opposed to following the traditional IPO route. What we do know, however, is that it is already steadily producing and delivering vehicles, unlike many of the electric vehicle (EV) startups we’ve seen in the last number of years.
Polestar delivered just over 10,000 vehicles in 2020. while 2021 saw the company report year-over-year growth of over 185%, successfully delivering over 29,000 vehicles. While a precise breakdown was not given, it’s expected that the vast majority of these sales are from the company’s Polestar 2 line, which sells for just under $50,000. The Polestar 1, which would make up the rest of the sales figures, is highly exclusive in that only 1,500 were reportedly made available worldwide at a cost of over $150,000.
Polestar’s growth potential
Polestar is an extremely exciting prospect in the EV space. It has much of what a lot of other EV startups possess: sleek design, a competitive price-point, and a clear dislike for Elon Musk and Tesla — as evidenced by its Superbowl commercial. But, the company also possesses some stand-out qualities that these other startups don’t have.
First and foremost, Polestar is already selling cars. It has a clear production and delivery line in place, which has already grown considerably over the past two years. It has also launched in 10 markets so far, giving it ample space for growth across the globe.
Polestar also has a direct in-road into one of the world’s most lucrative markets for EVs — China. Polestar’s parent company Volvo is in turn owned by Chinese conglomerate Geely. As a result of this, Polestar’s production actually takes place in a plant in Chengdu. Having a clear footprint in both Europe and China gives it a distinct advantage over many EV startups that are confined to a single market.
It will take more than some thinly veiled insults in a Superbowl commercial to take Tesla’s EV throne, but Polestar has announced its intentions for all to see. It’s coming for the top spot in one of the world’s fastest-growing industries. While coming out on top is certainly a tall order, Polestar has all of the qualities needed to, at the very least, be a formidable player in the market for years to come.