Polestar Is on a Road to Nowhere, Bernstein Says.

ZHEJIANG Geely Holding Group Co. Ltd.; VOLVO Car Corp.; STOCK prices; VOLVO automobiles

According to Bernstein, Volvo Car AB and its parent company Geely may need to take Polestar Automotive Holding private due to its struggles in the electric car market and intense competition. Bernstein analyst Daniel Roeska believes that while Polestar has an innovative strategy and good cars, it should not be a stand-alone equity. Bernstein has initiated coverage of the company with an underperform rating and a target share price of $1.15, indicating a 44% downside. Polestar has faced pessimism from other sources as well, with SEB recently stating that it could no longer attribute a value to the company. Polestar CEO Thomas Ingenlath defended the company, stating that it is trading at $4 billion worth. However, Polestar has faced challenges in gaining market share and competing with Chinese manufacturers selling cheaper battery-powered models. [Extracted from the article]

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