In a surprising turn of events, Thomas Ingenlath, the chief executive and founder of Polestar, has stepped down after seven years in leadership. Polestar, a Swedish electric vehicle manufacturer controlled by Volvo and China’s Geely, confirmed his resignation on Wednesday, with a new CEO set to take over on October 1st.
Ingenlath’s departure comes amid a notable decline in Polestar’s sales, with global volumes plummeting by 40% in the first quarter of 2024, from 12,076 units the previous year to just 7,221. The company’s valuation has significantly dropped from over $20 billion (£15 billion) at its peak to around $2 billion since going public in 2022. Its shares, listed in New York, have fallen by 41% this year, highlighting the challenges faced by the once-promising electric vehicle manufacturer.
Headquartered in Gothenburg, Sweden, Polestar reported losses nearing $1.5 billion for 2023. Originally a prototyping division of Volvo, Polestar became a standalone brand in 2017, aiming to compete with Tesla in Europe. Despite receiving positive reviews for models like the Polestar 2 electric hatchback, the company has struggled to convert this acclaim into significant sales, according to analyst Matthias Schmidt.
In February, Volvo announced it would cease financial support for Polestar, transferring part of its 48% stake to Geely. Subsequently, Polestar secured a nearly $1 billion loan from a consortium of banks after Geely agreed to continue its support. Earlier this year, Polestar also announced plans to reduce its workforce by about 15%, equating to approximately 450 positions globally.
Michael Lohscheller, a former Volkswagen executive, will succeed Ingenlath as CEO. Winfried Vahland, Polestar’s incoming chairman, indicated that this leadership change aligns with the company moving beyond its “start-up phase,” stressing the need for a coherent product strategy and a stronger global market presence to drive future growth.
The electric vehicle market has encountered difficulties recently, with demand slowing in Europe due to rising inflation. Electric car prices remain high compared to petrol vehicles, and consumers continue to express concerns over range anxiety. As Polestar addresses these challenges, it also faces heightened competition from Chinese electric car manufacturers entering the European market with new models that threaten to undercut local automakers.
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