From Fortune:

Polestar is in a financial crisis, and the only hope it has to survive may be if Volvo and Zhejiang Geely, Polestar’s parents, take the company private. They argue that Polestar may need to fold back into Volvo Cars-Geely ecosystem.

Despite its modern Swedish design and premium brand image, Polestar has been unable to scale with its expensive models. The company has a $1.3 billion funding gap until 2025.

Polestar recently reshuffled key positions amid disappointing Q4 volumes and a price war unleashed by Tesla in China. At the same time, the company has experienced only 6% growth in 2023 after achieving 80% growth the previous year.

The decision to take Polestar private would be a complete turnaround from the strategy that Wall Street favored during the zero interest rate days when it urged legacy carmakers to spin off and float their loss-making EV brands like Polestar

Polestar, which announced plans to go public via a SPAC in 2021, has been disappointing for investors and has lost 84% of its value since then.



Read more: Tesla and BYD EV price war threatens Volvo spinoff Polestar