Why EV Maker Polestar Automotive's Shares Are Soaring Today

Author: Shivani Kumaresan | June 17, 2024 12:09pm

Shares of Polestar Automotive Holding UK Plc (NASDAQ:PSNY) are surging today after the company said it is expanding its global presence and enhancing its retail strategy to include both existing and new markets as its electric vehicle (EV) lineup grows.

This strategic growth includes the introduction of a non-genuine agency sales model across Europe, designed to streamline the purchasing process for customers.

The shift to the agency model allows customers to configure and purchase their vehicles online or through an expanding network of Polestar Spaces and service locations.

This change aims to make acquiring and owning a Polestar more accessible and customer-friendly. Sweden and Norway have already adopted this new sales model, with other key European markets expected to follow in the latter half of this year.

Looking ahead, Polestar plans to enter seven new markets by 2025, including France, which is the second-largest market for electric vehicles in the EU.

The company is also targeting expansion in the Czech Republic, Slovakia, Hungary, Poland, Thailand, and Brazil, leveraging local distribution partnerships to increase its market penetration.

Thomas Ingenlath, CEO of Polestar, said, “Expanding our retail operations with new and existing partners will enable us to reach more customers. Through these partnerships and expansion, we will capitalize on our strong brand and growing model line-up.”

In support of its expansion, Polestar announced several key leadership changes aimed at bolstering its management team. Anders Gustafsson has been appointed as Head of North America.

Price Action: PSNY shares are trading higher by 13.9% at $0.7747 at last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Jeppe Gustafsson on Shutterstock

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