$500 million is all it needs to take on the world's most valuable automaker.
The electric vehicle industry is now in full swing and while Tesla may be the leader, there are many rivals waiting in the wings. Polestar is one of them. Unlike other automakers, Polestar was founded to be all-electric from the get-go, the sole exception being the limited-edition Polestar 1. However, the Polestar 2, which has recently been the subject of two recalls, is a direct rival to the Tesla Model 3, and the Swedish brand also recently confirmed it'll build a production version of its stunning Precept concept. Additional battery-electrics are also in various stages of development and this requires money. A lot of money.
According to Bloomberg, Polestar is now in talks with investors with the goal of raising at least $500 million.
It's a curious move considering that Polestar is controlled by Volvo and that their mutual parent company is Geely. Why can't Polestar receive the necessary funds from Geely? The most likely reason is that Polestar aims to operate more independently. Doing so will better position it to take on Tesla, an automaker that's never played by the so-called industry rules.
Polestar is also seeking a valuation of around $6 billion, though this can't be confirmed just yet because no one from the automaker is willing to talk on the record. The report also does not indicate an official announcement is imminent, meaning the talks are still ongoing.
Polestar's reported $6 billion valuation desire is very small compared to that of Tesla. Last summer, the California-based manufacturer was valued at over $400 billion after overtaking Toyota as the world's most valuable automaker and has remained relatively stable ever since. In order to carve a niche for itself in the world of EVs, Polestar, whose vehicles are currently built in China, has opted to use environmentally-friendly materials for its vehicles' interiors. Examples include recycled PET bottles, cork vinyl, and even recycled fishing nets for floor carpets.
Still, will investors balk at the two very recent Polestar 2 recalls? It's not exactly the best start for the company's first all-electric model and may not inspire confidence.