Polestar Pops. The EV Maker Is Selling Cars Using an Old Model.
Electric vehicle start-up Polestar Automotive has a new way to sell its cars. And investors like it.
On Monday, Polestar said it is initiating a “non-genuine” sales model across Europe.
The auto maker plans to enter France, the Czech Republic, Slovakia, Hungary, Poland, Thailand, and Brazil in 2025.
The model allows the car buyer and the dealer to haggle over the price, which many Americans are familiar with. With a “genuine” model, the manufacturer typically sets a price and any dealer profit margin is fixed.
A lot of EV start-ups sell directly to buyers without negotiation on price. Polestar buyers can still configure a car on the company’s website—in markets where Polestar vehicles are available.
“Expanding our retail operations with new and existing partners will enable us to reach more customers,” said CEO Thomas Ingenlath in a statement. “Through these partnerships and expansion, we will capitalize on our strong brand and growing model lineup.”
More distribution partners translate to more car sales—one reason investors are pleased. In premarket trading, the shares were up 8.1% at 74 cents; S&P 500 and Nasdaq Composite futures were down 0.1% and up 0.2%, respectively.
The stock is still down about 67% year to date. Slowing EV sales growth, lower EV prices, and more EV competition have weighed on investor sentiment.