Polestar has experienced a challenging start to the year, amidst rumors of parent company Volvo considering reducing its majority stake. However, the company’s CEO has provided clarity on a new shareholder structure involving Volvo and fellow stakeholder Geely.
The new arrangement coincides with the launch of several of the automaker’s electric vehicles in the auto markets. Volvo will retain an 18 percent stake in Polestar, down from around 48 percent, with the company starting to trade convertible shares internally at Volvo.
This move aims to strengthen the ownership structure within the Geely ecosystem and provide a wider shareholder base, increasing the free float since the NASDAQ listing in 2022. Ingenlath, the CEO, highlights the widespread availability of the Polestar 2 in multiple markets and mentions the anticipated final prototype development for the Polestar 5, a four-seat grand-tourer, later this year.
The company’s strategy emphasizes reaching a larger shareholder base and increasing free float, aligning with its NASDAQ listing. The reduced Polestar 3 prices suggest a potential question about demand even before its availability.
The ongoing developments and adjustments in shareholder structure reflect a dynamic period for Polestar as it navigates its position in the electric vehicle market.