CEO of Polestar steps down
In a significant move for the electric vehicle (EV) brand, Polestar has announced it has secured up to $300 million in external funding. The funds, in the form of a one-year revolving term loan facility, will be used for general corporate purposes.
The news comes at a critical time for Polestar, as the company faces dwindling investor confidence, slower than anticipated sales, and rising global competition in the EV segment. The funding injection is expected to bolster Polestar's efforts to regain its footing and maintain its position in the competitive EV market.
Michael Lohscheller, who brings a wealth of automotive expertise to the CEO role, has been appointed to lead the company. Lohscheller, who stepped down as president and CEO of Nikola Corp. on August 4, 2023, has a proven track record of navigating competitive markets and scaling businesses. Winfried Vahland, Polestar's incoming Chairman, stated that Lohscheller's deep industry knowledge will be instrumental in Polestar's growth.
Lohscheller's arrival coincides with a significant milestone for Polestar. Earlier this month, the company started production of its luxury SUV, the Polestar 3. With this addition, Polestar plans to have five performance EVs on the market by 2026.
Thomas Ingenlath, who served as the CEO of Polestar since its inception in 2017, stepped down from his position effective October 1, 2023. Jan Grindemann, who has taken over as the new CEO, will lead the company as it navigates the challenges ahead.
Polestar went public in June 2022, but a notice of noncompliance issued in July for not meeting the Nasdaq's $1 minimum bid price requirement has put pressure on the company. Polestar has 180 days, until Jan. 2, 2025, to regain compliance.
In Q2 2024, Polestar delivered 13,150 cars globally. Despite the challenges, the company remains committed to its mission of producing high-performance electric vehicles that offer a sustainable, enjoyable, and progressive driving experience.
Volvo Cars, which initially held a majority stake in Polestar, now owns just 18% of the EV brand. The company's future is now in the hands of its new leadership, as it looks to carve out a space for itself in the increasingly competitive EV market.
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