Polestar, the electric vehicle maker, is undergoing a board shuffle as it grapples with operational challenges and a decline in its stock price. The company’s chairman, Håkan Samuelsson, who previously served as the CEO of Volvo Car, will be stepping down. Samuelsson played a pivotal role in both the stock market listings of Polestar and Volvo. He will be replaced by Winfried Vahland, the current director of Polestar.
The decline in Polestar’s share price has been ongoing for two years, and the company has faced various operational obstacles during this time. The manufacturer has experienced a slower-than-expected ramp-up in production, and there has been a cooling demand for electric vehicles (EVs) in the market. These challenges have taken a toll on Polestar’s financial performance.
Last month, Nasdaq issued a warning to Polestar, stating that the company could be delisted after its management failed to file the 2023 annual report with the US securities regulator on time. This development further compounded the company’s woes.
In an effort to alleviate some of the pressure on its balance sheet, Volvo distributed a significant portion of its stake in Polestar to shareholders, particularly entities of its parent company Geely. This move was aimed at providing Polestar with a more defined and diversified ownership structure and positioning it as a stronger and more independent brand within the Geely ecosystem. However, despite these measures, Polestar’s shares have continued to plummet, declining by approximately 69% this year alone. As a result, the market valuation of the company, which produces the Polestar 4 SUV, now stands at $1.5 billion.
The changes in the board structure indicate that Polestar is taking proactive steps to address its challenges and navigate through this difficult period. New directors, Christine Gorjanc and Xiaojie Shen, have been proposed to join the board. These individuals bring fresh perspectives and expertise to the table, which could potentially help Polestar overcome its current obstacles.
It remains to be seen how the new board appointments and other strategic measures will impact Polestar’s future. As the company continues to face operational challenges and struggles with its stock price, it will be crucial for Polestar to find ways to regain market confidence and position itself as a leading player in the booming EV industry. With the right leadership and strategic direction, Polestar has the potential to regain its footing and thrive in a highly competitive market.