When it comes to EVs, Polestar is one of the frontrunners. It is a sub-brand of Volvo, the world’s leading automaker that has set the standard for car safety for several decades.
Although Volvo has been around since 1927, Polestar is still a new entrant that was founded in 1996 and was acquired by Volvo in 2015.
This article delves into the details of Polestar and discusses the future growth potential of the brand.
Operating Under The Umbrella Of Geely
As Polestar currently operates under the larger umbrella of Geely, it is vital to first take a look at this company.
Geely is a Chinese multinational corporation that was founded in 1986, 35 years ago. As of today, the company employs 80,000 people and has total assets of 206.75 billion Chinese Yuan.
This means that, over the years, the brand has established itself as a reputable company with a wide array of products.
Other Auto Brands Owned By Geely
Geely has an impressive portfolio that includes not only Polestar but also Volvo, Proton, and Lotus just to name a few.
Geely’s Role In Setting The Polestar Brand
It is worth noting that Geely took over the ownership of Volvo from Ford back in 2009.
It was 6 years after this acquisition that Polestar, the luxury performance brand that we know today, went under the ownership of Volvo or indirectly Geely.
In other words, Polestar rose to prominence only after it was acquired by Geely.
Polestar’s Potential
Polestar expects its current annual sales of 29,000 to rise to 290,000 by 2025, according to recent reports. That’s a tenfold increase in just four years.
An Important Merger
Recently, the company decided to merge with Gores Guggenheim. It has decided to go public, and its estimated value is €18.96 (£16.08) billion. However, following the merger, the company’s name will be changed to Polestar Automotive Holding UK Limited.
It is important to remember that the new company’s value is nearly three times the previous brand’s estimated revenue for 2023 and nearly 1.5 times its expected revenue for 2024.
The EV Segment Is Hot
The global EV market is incredibly hot, and the situation for brands, including Polestar, is only expected to improve in the coming years. Here is a graph showcasing the expected sales of EVs in the years ahead.
Market Caps Of Electric Automakers
There are multiple instances in which EV companies that went public previously, now have gargantuan market caps.
Some of the examples include Lucid Motors have a market cap of €38.58 (£32.73) billion. Similarly, Rivian has a market cap of €81.52 (£69.15) billion.
Chinese Are Ahead Of The Competition In The EV Game
Being a sub-brand of the Chinese automaker Geely will have no negative impact on Polestar’s overall performance rather it might help the company in growing further. NIO, another Chinese brand, already has a market cap of
Rather, the Chinese EV segment is making much more progress than other countries. Chinese companies NIO, XPeng and Li Auto now have market caps of €54.98 (£46.64) billion, €28.63 (£24.29) billion and €25.97 (£22.03) billion respectively.
Even a two-year-old graph shows that Chinese-made EVs are outselling imported EVs.
Now Available At 40 Locations
Although Polestar accepts orders online, asserting its stance as a company of the future, still it has set up its facilities at 40 different locations across three continents. This demonstrates that it is growing on a global scale.
Final Verdict
Polestar is a growing EV automaker with a promising future. The potential of the company is yet to see its peak.
Polestar is gaining prominence despite having only two vehicles available at the moment.
However, by introducing additional models and thus providing more options to customers, the company will be able to fully capitalize on the EV segment’s potential.
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