George Gianarikas, a senior research analyst at Robert W. Baird & Co., believes there has been a shift in how the world views electric vehicle startups.
“Part of it has to do with the change in market mood, part of it has to do with operational problems that companies have had getting off the ground in a global supply chain crisis,” he said.
Meanwhile, competition from rapidly electrifying legacy automakers is stiffening. Luxury brands BMW and Mercedes-Benz are launching a fleet of high-performance battery-powered models.
“Investors are now looking at traditional OEMs that might have previously canceled,” Gianarikas said.
Still, Polestar has something Rivian and Lucid lack: a multi-year revenue record.
Polestar sold 29,000 sedans worldwide last year and reported about $1.5 billion in revenue. In April, the company signed a deal to supply rental giant Hertz with 65,000 battery-powered vehicles. The five-year deal represents more than $3 billion of potential revenue for Polestar.
“Calling Polestar a startup is a misnomer,” said Sam Abuelsamid, principal analyst at Guidehouse Insights.
As it grows, Polestar relies on the considerable production, supply chain and retail infrastructure of its parent, Zhejiang Geely Holding, which owns several car brands, including Volvo Cars.