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Should Volvo take EV maker Polestar (PSNY) private? Investment research firm Bernstein says it may make more sense.

Polestar built high-performance vehicles alongside Volvo for over two decades. After Geely bought out Volvo, Polestar was established as an independent electric vehicle brand in 2017.

The brand’s first passenger vehicle, the Polestar 1, was a hybrid that offered up to 78 miles of all-electric range. Polestar’s first all-electric vehicle, the Polestar 2, was revealed in February 2019.

Since launching the Polestar 2 over three years ago, Polestar has expanded into 27 markets globally. The Polestar 2 has become a top seller in key EV markets like Norway, Sweden, Germany, and others.

Polestar hit a milestone with its 150,000th Polestar 2 rolling off the line last August. However, the EV maker has struggled to gain ground with rising competition.

The EV maker delivered 54,600 vehicles last year, up 6% from 2022. Despite cutting its delivery target in November, Polestar still missed it by over 5,000 units. Initially, Polestar expected to deliver 80,000 vehicles last year.

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Polestar 2 (Source: Polestar)

Polestar believes its upcoming electric SUV and first CUV will help spark demand. After delaying Polestar 3 production, the company is expected to begin building the electric SUV in early 2024.

Meanwhile, Polestar 4 production began in China in November. The EV maker sold 880 Polestar 4 models in China last year.

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Polestar 3 (left) Polestar 4 (right) (Source: Polestar)

Should Volvo take Polestar private?

Polestar’s deliveries fell in the last three months of the year due to a “challenging market,” according to CEO Thomas Ingenlath.

The EV maker now expects 2023 gross profit margins to be around break-even from the previously revised 2% target (down from 4%).

Although the delivery growth pushed revenue up to $367.7 million (+25%) in Q3, higher costs led to gross margins falling 63% to $36.3 million.

The rising costs led to an operating loss of $261 million (+33%). Polestar had $951.1 million in cash at the end of September, not including an additional $450 million loan from Volvo and Geely.

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Polestar (PSNY) stock chart over the past 12 months (Source: TradingView)

Polestar’s stock has fallen over 62% in the past 12 months and is down over 85% from its all-time highs.

Bernstein analyst Daniel Roeska said in a note that Polestar is “on a road to nowhere.” The note added, “We love the innovative asset-light strategy, we like the cars, but we don’t think the company should be a stand-alone equity.

The investment research firm is initiating coverage on Polestar’s stock with an underperform rating. It also gave it a $1.15 target share price, suggesting over 40% downside.

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Polestar 3 (Source: Polestar)

Roeska said that although “we would like to see the concept and brand survive,” it believes it “would make more sense for Polestar to eventually fold back into the Volvo Cars-Geely ecosystem.

Ingenlath defended the EV maker, saying, “Anybody interested in the value of the company only needs to go to the ticker to see that it is trading at $4 billion worth.”

He didn’t reveal whether Volvo or Geely was pushing Polestar to go private. Ingenlath did say, “It’s our own interest to not make this company always dependent on being funded by our shareholders.”

Electrek’s Take

Despite Q4 deliveries slowing, Polestar has a lot to look forward to. Its first electric SUV, the Polestar 3, is expected to launch soon.

In the US, the Polestar 3 will start at $83,900. It will come in two configurations – a long-range dual motor and a performance pack version. Both will be powered by a lithium-ion battery with 111 kWh capacity.

The standard version (starting at $83,900) will include up to 300 miles EPA range. The performance version will include 517 hp and 671 lb-ft of torque for a 0 to 60 mph sprint in 4.6 seconds. It will feature a 270-mile range for an MSRP of $89,900.

The electric SUV will face stiff competition, including the Rivian R1T, Tesla Model Y (and Model X), and BMW iX.

Polestar will also scale production of the Polestar 4 in China. The brand is deploying a “targetted approach” with key EVs hitting major auto markets.

Other EV startups, including Lucid, have struggled to gain traction, with new EVs flooding the market. Price cuts from leaders like Tesla and BYD have made it hard for rivals to compete.

Source: Bloomberg

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The Eastern US’s first CFI-funded EV charging hub comes online

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The Eastern US's first CFI-funded EV charging hub comes online

The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.

The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.

These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.

The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.

Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:

Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.

In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.

The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.

Read more: The US reaches milestone of 200,000+ public EV charging ports


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Kia’s new low-cost EV4 was just spotted in the US for the first time

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Kia's new low-cost EV4 was just spotted in the US for the first time

Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.

The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.

During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.

Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.

The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.

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Kia EV4 (back) showcased alongside (from left to right) the EV9, EV3, EV5, EV4, and EV6 (Source: Kia)

Kia’s new EV4 is now testing in the US

Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.

The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.

Kia EV4 caught on US streets for the first time (Source: KindelAuto)

Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).

Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.

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Kia EV4 concept (Source: Kia)

The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.

Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.

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Kia EV4 concept interior (Source: Kia)

We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.

Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?

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Nissan unveils sleek new N7 electric sedan to reverse slumping sales in China

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Nissan unveils sleek new N7 electric sedan to reverse slumping sales in China

Nissan introduced its newest EV, a sleek all-electric sedan, at the Guangzhou Auto Show this week. The N7 is the first Nissan electric vehicle under its new strategy to spark life back into the brand in China.

Nissan hopes new N7 EV can compete in China

Like most foreign automakers, Nissan is struggling to stay afloat in China as homegrown automakers, like BYD, take control of the market.

Nissan hopes to turn things around after Dongfeng Nissan, its Chinese JV, unveiled the new N7 EV sedan at the Guangzhou Auto Show on Wednesday. The N7 is the first next-gen Nissan EV aimed at China as it looks to regain ground in the world’s largest electric car market.

Nissan claims the new model will “redefine the new benchmark for China’s mainstream family pure electric sedans.” It will be the first model built on Dongfeng Nissan’s new dedicated EV platform.

The company promises the new platform offers “a stress-free driving experience, superior comfort, and a suite of intelligent technology.”

At 4,930 mm long, 1,895 mm wide, 1,487 mm tall, with a wheelbase of 2,915 mm, the N7 is slightly longer than the Tesla Model 3 (4,720 mm long, 1848 mm wide, 1,442 mm tall, 2,875 mm wheelbase).

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Nissan N7 electric sedan (Source: Dongfeng Nissan)

You can see Nissan’s signature V-Motion design in the headlights and front bumpers. Inside, the N7’s infotainment system is powered by a Qualcomm Snapdragon 8295p processor for a faster, seamlessly connected system.

Nissan also partnered with smart driving tech leader Momenta to offer an advanced driver-assist system called “Navigate on Autopilot.” The N7 will be equipped with high-speed navigation NOA, city memory navigation NOA, and full-scenario intelligent parking.

The new N7 EV is set to go on sale in China in the first half of 2025 as Nissan aims to regain relevancy. Nissan’s sales in China fell 5.4% through the first nine months of 2024 after crashing 33% in 2023.

Will the N7 help Nissan reignite the brand in China, or will it continue losing ground to domestic auto brands like BYD and NIO? Let us know what you think of the electric sedan in the comments below.

Nissan isn’t the only legacy automaker developing specific EVs for China. Hyundai is launching a new AI-powered EV in China next year as it looks to counter China’s surge.

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