A New EV Company Arrives This Week. It’s Worth More Than Rivian. (Polestar)

[Count Orlok]

A New EV Company Arrives This Week. It’s Worth More Than Rivian.

Buy more Rvian or dip your toes into PSNY?

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[R1Sky Business]

More Rivian....let's take out a 2nd mortgage, what's the worst that can happen....

 

[Max]

With Tesla valuation and after Rivian IPO pricing everyone want a piece of that action by putting a lipstick on a Chinese piggy bank. Although Chinese are kicking booty in EV market and polestar is probably a safer bet, I still rather buy Rivian (if it goes closer to 20 again).

 

[DJG]

It's been planned for nearly a year, but what a time to be executing. Night and Day difference from Rivian's timing. That being said, Polestar isn't completely standing on it's own, so the access to capital isn't as crucial as it was for Rivian. Will be interesting to see the comparative valuation.

Rivian currently has more products/models, but that will change over the next couple years. By 2025 Pstar will have four models, 2 SUV and 2 sedan. Rivian will have 3 on the consumer side plus the commercial vans. They have much lower expectations of market share than Rivian though, only a few hundred thousand units per year. They do already have a global presence though. Pstar currently leverages Volvo dealerships a great extent, so not sure how that flows through financially, but probably is less accretive than Rivian's fully integrated model. Not sure of their plans for services revenue, given they utilize Google for the UI. However, they would be seen as less risky than Rivian currently, and thus garner a better valuation all else equal.

I think that at first glance I would step back and say the consumer businesses are more or less a wash, and the differentiator is the commercial business for Rivian.

 

[NY_Rob]

Thanks but no thanks, my big toe is still bleeding from that wonderful Rivian DSP and runup/nosedive into oblivion..

 

[lostpacket]

Polestar seems great but spacs make me nervous. Curious how the relationship to geely/Volvo works too.

 

[Max]

and the differentiator is the commercial business for Rivian.

I don't quiet understand the Volvo polestar relationship. Volvo is looking at Hydrogen EV trucks. If they replace the logo on those things with Polestar, that could be a big commercial business.

 

[Acoustic71]

More Rivian....let's take out a 2nd mortgage, what's the worst that can happen....

Actually that's a "Reg 6" violation, and was contributing factor to the housing market collapse and recession of 2008-2009.

But hey, carry on!

 

[kvenom]

I don't quiet understand the Volvo polestar relationship. Volvo is looking at Hydrogen EV trucks. If they replace the logo on those things with Polestar, that could be a big commercial business.

Volvo Cars (Geely) and Volvo Trucks are not connected anymore, they are completely separate companies.

 

[moosehead]

Polestar seems great but spacs make me nervous. Curious how the relationship to geely/Volvo works too.

+1 to Spac's being sketchy. Also, if it matters to you, Polestar's primary plant is in PRC, though Polestar 3 will reportedly be manufactured in U.S.

 

[DJG]

I don't quiet understand the Volvo polestar relationship. Volvo is looking at Hydrogen EV trucks. If they replace the logo on those things with Polestar, that could be a big commercial business.

Volvo and Polestar are both subsidiaries of Geely out of China. They have several other brands, mostly for the Asian market like Zeekr (though this might come to the US), but also includes Lotus which will be a close cousin of Polestar (Lambo vs. Porsche for analogy). Think of Geely as kind of like a VW, though there is no Geely brand like there is VW. All of them serve their specific role in the portfolio, with a sharing of resources. Polestar's niche is the performance market (their roots are the performance tuning division of Volvo), so you'll never see them make a truck of any kind, much less a commercial truck (that's Volvo's job). They will be sporty sedans/hatchbacks and SUV's for the foreseeable future.

Part of what comes with that is Polestar will intentionally not be trying to capture the broad market, because that's not their purpose. Geely looks at the whole picture. For that reason, it's dubious that Pstar should/would be as valuable as an independent like Rivian, but it just comes down to sales volume. It's similar to how there are rumblings of Porsche being spun out of VW as an independently traded company.

 

[DJG]

+1 to Spac's being sketchy. Also, if it matters to you, Polestar's primary plant is in PRC, though Polestar 3 will reportedly be manufactured in U.S.

Well not reportedly, it will be. It's in South Carolina and will also make the Volvo version (XC90 electric).

 

[kurtlikevonnegut]

Well not reportedly, it will be. It's in South Carolina and will also make the Volvo version (XC90 electric).

I knew about the electric XC-90 being built at the Berkely facility but I didn't realize they were going to be making any Polestars there as well. Knowing plenty of people who live in Berkely county I'm not sure if that's a good thing....

 

[DJG]

I knew about the electric XC-90 being built at the Berkely facility but I didn't realize they were going to be making any Polestars there as well. Knowing plenty of people who live in Berkely county I'm not sure if that's a good thing....

You could likely say the same thing about every county that is home to a major auto plant. San Antonio is one of the few that is actually a robust talent pool.

 

[Tim-in-CA]

Thanks but no thanks, my big toe is still bleeding from that wonderful Rivian DSP and runup/nosedive into oblivion..

Yea ... I hear you ... I'm WAYYYY down in my portfolio ... so much for retiring early.

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