Polestar: A Great Future Stock For Direct Indexing.
Electric vehicle companies have been among the biggest winners of the shift to net zero emission world as well as the fashion for special purpose acquisition vehicles (SPACs) and retail excitement for stock markets.
The problem: a lot of these companies have real issues. Some have over-promised and under-delivered, others have lied about their vehicles capabilities and/or readiness and most problematically, many have simply lost a lot of money. Emphasis on a lot.
This has caused a dramatic shift in the perception of the industry from "the future" to "a disaster."
Polestar could be different.
Established car companies (Volvo and its owner, Chinese car company Geely) own a majority stake.
Founded in 1995 they have sold real vehicles since 2019. Truly.
They are building their next vehicle, an SUV (Polestar 3) in Chengdu and South Carolina to avoid tariffs in either large market.
The new vehicle goes on sale in 2022 and the company aims to be profitable (and conduct an IPO) shortly thereafter.
Polestar has access to the branch network, manufacturing methods, industrial technology and brand marketing of their parents car companies.
There has been a hype about electric pickup trucks (from Ford, Tesla, Rivian etc) and with good reason. But could an American made, Volvo supported, safe and dependable, luxury electric SUV be the underrated pick of the bunch?
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