According to Bloomberg, Bernstein analysts suggest that Volvo Car AB and its parent company Geely may need to privatize Polestar Automotive Holding. Analysts believe that in fierce competition, the stock price of Polestar will further decline.

　　Polar Star, which went public in 2022, is "on a dead end". Bernstein analyst Daniel Roeska stated in a report, "We like innovative light asset strategies, we like cars, but we believe the company should not go public independently."

　　Bernstein has rated Polaris as underperforming, with a target stock price of $1.15, a 44% decline. In the past year, the company's stock price has plummeted by over 82%. Roeska said, "Fundamentally, we hope this concept and brand can survive, but currently we believe that it would be more reasonable for Polestar to ultimately return to the ecosystems of Volvo Cars and Geely."

　　SEB, a Swedish bank, stated last week that continuous cash consumption has made it difficult for the company to find a valuation bottom line and therefore unable to further value Polestar. This statement further exacerbates the market's pessimistic sentiment towards Polestar.

　　Image source: Polar Star

　　At 10:50 am local time on January 24th in Stockholm, Volvo's stock price rose 0.7%. In the past 12 months, the company's market value has fallen by 44%. On NASDAQ, Polaris rose 0.5% at the close of January 23rd, reaching $2.10 per share.

　　On January 19th, Thomas Ingenlath, CEO of Polaris, defended the company by stating that "anyone interested in the value of Polaris only needs to check the stock code and will find that its market value is as high as $4 billion.". He stated that listing Polestar independently is a "meaningful action" because Polestar has successfully established a foothold in the electric vehicle market. Furthermore, he did not disclose the positions of Geely and Volvo. He emphasized that "what we are more concerned about is not letting the company always rely on shareholder funds.".

　　Since its listing in the United States in 2022, Polestar has been seeking funding from its major shareholders Volvo and Geely, with the goal of more than doubling production in the next two years. These two major shareholders hold 88% of the shares in Jixing and over 93% of the voting rights. Representatives from Volvo Cars and Geely Sweden declined to comment on the above report.

　　In the weak economic environment and fierce competition from Chinese manufacturers, Polestar has been striving to gain market share. However, as consumer enthusiasm for electric vehicles cools down, this year's challenges may become more and more numerous.

　　Ingenlath said, "Many companies with electric vehicle businesses have been impacted, and we are no exception." He also emphasized that he will continue to serve as CEO with "great motivation," and firmly believes that 2024 will be a successful year.

　　This article is reprinted from Gaishi Automotive Information Network