July 25, 2024
Electric & Hybrid Cars

Polestar Chair Resigns Amidst Declining Stock Value of EV Maker

The chairman of Polestar is set to resign as part of a wider board reorganization for the struggling electric vehicle manufacturer. Håkan Samuelsson, who previously served as CEO of Volvo Car, will be replaced as chairman by current director Winfried Vahland, according to a statement from Polestar on Tuesday. Another board member, Carla De Geyseleer, will not seek reelection at the next annual shareholder meeting.

Polestar has put forward Christine Gorjanc and Xiaojie Shen as new board members in light of ongoing operational challenges and stock difficulties. The company has been grappling with a decline in its share price since its 2022 New York listing through a blank-check merger. Nasdaq recently issued a warning to Polestar regarding a potential delisting due to a delayed filing of the 2023 annual report with the US securities regulator.

Samuelsson played a key role in the stock market listings of both Polestar and Volvo. Earlier this year, Volvo distributed a significant portion of its Polestar stake to shareholders, mainly entities of parent company Geely, to alleviate pressure on its own finances. Despite these efforts, Polestar’s shares have dropped by approximately 69% this year, resulting in a market valuation of $1.5 billion for the Polestar 4 SUV manufacturer.

When the ownership restructuring was announced in February, CEO Thomas Ingenlath expressed confidence that it would establish Polestar as a stronger and more independent brand within the Geely ecosystem. However, the company has continued to rely on its major shareholders for additional funding.

 

FAQ

Q: Who is replacing Håkan Samuelsson as chairman of Polestar?

A: Winfried Vahland, a current director, will be taking over as chairman.

Q: What recent challenges has Polestar been facing?

A: Polestar has been dealing with operational issues and a decline in its share price.

Q: How has Volvo been involved with Polestar’s ownership?

A: Volvo distributed part of its Polestar stake to shareholders, including entities of parent company Geely, earlier this year.

 

Conclusion

Despite ongoing challenges, Polestar is undergoing a board reshuffle in an effort to address operational issues and improve its financial standing. The appointment of new board members and changes in leadership signal a commitment to navigating the company through its current difficulties.

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