Volvo is wise to delist Polestar from the stock exchange in New York if bankruptcy is to be avoided, says an analyst.
Although Geely sent Polestar to the stock exchange in New York just three years ago, it may be now that the Chinese are wise to ditch the brand again.
It may be necessary if Polestar is to survive the ever-increasing competition on the electric car market and the resulting falling prices.
This is what Berstein analyst Daniel Roeska tells the financial media Bloomberg .
Roeska calls Polestar a car brand that is heading down a road without direction. Primarily because it cannot keep up with the price pressure from either Tesla or the Chinese competitor BYD.
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Earlier this month, it emerged that the Swedish major bank SEB considers Polestar to be worthless. Read more about it here.
It is made worse by the fact that Polestar owes Volvo/Geely a good 20 billion Swedish kroner for the loan of production facilities for the brand's so far only model Polestar 2.
However, Polestar can save itself from collapse because, despite the share trade, the brand is still owned by Geely. The Chinese sit on 88 percent of the brand with as much as 93 percent of the votes among the shareholders.
Despite economic difficulties, Polestar has been successful in Denmark, where Polestar 2 has been made a hit through private leasing. In fact, no other car was privately leased to the same extent last year.
