EV Maker Polestar Expands Beyond China Amid Tariff Concerns: Report

Author: Shivani Kumaresan | April 24, 2024 01:31pm

Chinese-backed Swedish electric vehicle manufacturer Polestar Automotive Holding UK Limited (NASDAQ:PSNY) is reportedly ramping up efforts to diversify production outside of China amid escalating geopolitical tensions.

CEO Thomas Ingenlath discussed Polestar’s strategy amid concerns over potential tariffs on Chinese-made EVs in Europe, indicating plans to expedite exports of the Polestar 3, manufactured in South Carolina, to the European Union, Reuters reported.

Export efforts by Chinese EV companies face increased scrutiny, particularly in Europe and the U.S., over allegations of overcapacity and unfair state subsidies, with the European Commission initiating an investigation last October, the report added.

Following a major ownership restructuring, with Geely Automobile Holding (OTC:GELYY) and a private investment firm owned by Geely’s founder now holding a combined 69% stake, while Volvo Cars’ ownership reduced to 18%, Polestar aims to navigate operational challenges amid evolving market dynamics.

Polestar aims to deliver between 155,000 to 165,000 cars in 2025, with a focus on expanding its global sales footprint, aiming for a sales distribution of 40% in Europe, 30% in the U.S., and 30% in the Asia-Pacific region, per the report.

Despite the ownership restructuring, Ingenlath reassured that the day-to-day operations of the automaker are expected to remain unaffected.

Price Action: PSNY shares are trading lower by 3.94% at $1.23 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: GELYY PSNY