Who needs Volvo anyway? Shortly after co-parent company Volvo Cars announced plans to cut ties with Polestar, the EV-centric brand has turned to an all-star lineup of international banks for external funding totaling close to one billion dollars. Polestar’s other owner, Geely Holding, is still very much involved and will also help Polestar continue work to roll out its two incoming electric SUVs and beyond.
Polestar Automotive Holding UK PLC ($PSNY) is an automotive melting pot founded in 2017 with Swedish design roots from Volvo Cars and manufacturing know-how from Zhejiang Geely Holding Group, better known as Geely.
During its seven-year run, Volvo and Geely worked together to bring 2.5 EVs to market. That includes the Polestar 1 PHEV, the flagship Polestar 2 BEV, and the new Polestar 3 SUV, which just kicked off production in China this week but has yet to reach customers.
Beyond those models, Polestar already has three additional EVs in its pipeline, keeping the company plenty busy through 2026. Following an IPO that wasn’t as successful as anticipated, evoking global job cuts, Volvo Cars began to weigh its options on what to do with the EV brand it spun out of its own DNA years ago.
That led to a public breakup announced at the end of January 2024, in which the Swedish legacy automaker let its electric child down softly, describing the parting of ways as a “natural evolution” for both brands. Volvo essentially handled all control over to its partner Geely and cut its funding but said it would remain a strategic partner in Polestar R&D, manufacturing, and after-sales.
Last week, Volvo Cars shared plans to sell 62.7% of its stake to Geely, holding on to its remaining 18%. With close to 80% of Polestar in its portfolio, Geely said it would approve the sale and move forward with the EV brand. However, as large as Geely is, continuing Polestar’s production plans requires massive funding, so it has turned to big banks for help and found several affluent suitors.
Polestar 3 (Source: Polestar)
Polestar pushes forward sans Volvo, but with fresh funding
According to news from Polestar today, it has successfully secured $950 million in external funding financed by 12 international banks, including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB.
The funding will be distributed as a three-year loan facility, giving Polestar enough financial runway to continue development and reach its 2025 business targets. As of December 31, 2023, Polestar’s cash was around $770 million, so it was by no means in dire straights when Volvo bailed, but losing that automaker’s funding soured its 2024 outlook.
In addition to bank funding, Geely said it intends to participate in future financing if and when required. Polestar CEO Thomas Ingelath spoke about the fresh funding round:
Securing funding from a syndicate of global banks reflects our partners’ support for Polestar’s growth course. Together with Geely’s full financial support and access to innovative technology and engineering expertise, we have reinforced our path towards cash flow break-even targeted in 2025.
Polestar 3 production is expected to begin in South Carolina in Q2 2024, offering EV production on two continents to serve numerous markets worldwide. Despite the financial relief from bank funding, Polestar still has a lot riding on the success of its 3 and 4 SUV models.
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Tesla has reportedly yet to start testing its robotaxi service in Austin without a safety driver behind the wheel – just weeks before the planned launch.
For months now, Tesla and CEO Elon Musk have been hyping the launch of “Tesla Robotaxi”, a Uber-like ride-hailing service powered by autonomous Tesla vehicles, starting with a launch in Austin, Texas in June.
Instead, Tesla plans to build an internal fleet of “10-20” Model Ys and have them offer ride-hailing services in a geo-fenced area around Austin, Texas, helped by human teleoperations. This is very similar to what Waymo has been offering in other cities for years, specifically in Austin, for months now.
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Even with the significant downgrade in self-driving capabilities promised with this project, there are many doubts about Tesla’s ability to achieve the lesser goal.
That’s because the robotaxi service will be based on Tesla’s ‘Supervised Full Self-Driving’ program, which is currently achieving about 500 miles between critical disengagements fleet-wide, according to the latest crowdsourced data.
Tesla will be able to improve on that by optimizing a version for the geo-fenced area in Austin and it has been training its neural nets for that for months with vehicles going around Austin.
However, a new report now claims that Tesla has yet to start testing its service without safety drivers at the wheel – similar to Tesla’s public ‘Supervised FSD’. The Information wrote in a new report:
Elon Musk’s deadline for launching Tesla’s first robotaxi service, in Austin, Texas, is weeks away, but the company hadn’t started testing its cars without a human safety driver as of last month, according to an engineer close to the testing and a former employee. That’s a crucial step required before Tesla can launch the pilot service for customers.
For comparison, before launching its paid ride service in Austin, Waymo tested its vehicles with safety drivers in the area for 6 months and then without safety drivers for another 6 months.
Waymo has now taken over a significant market share of ride-hailing rides in the Texas capital, but it still has limitations; for example, it doesn’t drive on the interstate.
The report also mentions that Tesla has been working with local emergency services in Austin to develop intervention plans in order to avoid causing issues if its autonomous vehicles fail.
Electrek’s Take
This is the biggest softball goal. It’s a fraction of what was promised, it’s something that others have achieved before. It’s a punt created for Tesla to finally get a “win” in self-driving.
If they can’t even make it, it would be disastrous, but at least, I hope that it will finally open the eyes of many Tesla shareholders to the reality that Tesla is actually behind in autonomous driving and that Musk’s latest claims that Tesla will have “millions of robotaxi on the road” in 2026 are just the same as when he claimed it would happen in 2025, 2024, 2023, 2022, 2021, 2020, and 2019: corporate puffery.
My main concern now is for public safety. I have little hope of US regulators being able to stop Tesla considering Trump is firing anyone who got in Musk’s way after he gave him over $250 million.
If Tesla brings its cowboy approach to this, it could get bad quickly.
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The development of Rivian’s R2 validation builds continues to progress. We know so because the American automaker’s founder and CEO, RJ Scaringe, continues to pepper us with welcome updates with plenty of fantastic images. The latest post features the inner workings of Rivian’s Maximus drive unit, which will propel the upcoming R2 EVs when they hit the market next year.
Another day, another exciting social media update from RJ Scaringe. Nine days ago, the Rivian CEO shared a peek at the company’s new Maximus drive unit, designed to be more compact and efficiently built to help reduce cost-per-unit production.
Our only look was from outside the drive unit’s casing at the time, but it was exciting news nonetheless. As an encore, Scaringe posted photos of the R2 validation builds on a pilot line at the automaker’s facility in Normal, Illinois.
This evening, Scaringe took to Instagram and X once again to share a better look at the inner workings of the Rivian Maximus drive unit. Check it out:
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Source: @RJScaringe/X
RJ shares more images of Rivian’s Maximus development
Rivian’s CEO posted the three images above, which showcase some interesting perspectives of the developing drive unit. As previously shared by Rivian, Maximus uses a new continuous winding technique that reduces the total welds per stator and thus the total overall cost of building each one.
For comparison, Rivian’s current Enduro drive unit requires 264 stator welds, while Maximus only needs 24. You can see the stator windings in the image above to the left. Scaringe shared excitement in the progress of the Rivian team’s Maximus drive unit as well as some insight in his post:
I love the packaging on Maximus — the drive unit for R2. It has a side mounted inverter that utilizes flat area at the end of the motor to minimize the length of bus bars, keeping them light and efficient. The large planar shape also allows all processing and power electronics to exist on a single printed circuit board.
The inverter chassis closes out the oil cooled motor cavity and seamlessly routes coolant from the power modules to the drive unit’s heat exchanger with no extra parts.
Overall, the inverter part count is reduced by 41% relative to Enduro and structural inverter lid saves more parts and fasteners by also serving as the drive unit mount. I love this design efficiency. (heart emoji)
Looks fantastic, RJ. We can’t wait to see the visual progress of the R2 you share next!
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On today’s thrilling episode of Quick Charge, we’ve a huge spike in global EV sales and a huge dip in Tesla deliveries. Plus a whole bunch of news from Toyota, including an updated bZ that’s just a bit better than before … but is a bit better going to make a big difference?
We’re also on track for more than 1 in 4 new cars sold this year to be electric, with a whole lot more hybrids coming in to make up the difference and drive fuel demand down to a new yearly low. All this, plus the top 5 cheapest EVs to insure when you hit the play button.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Got news? Let us know! Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.
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