Polestar, the electric vehicle maker, is undergoing significant changes in its leadership team as the company faces challenges related to operations and a decline in its stock value. The chairman of Polestar has decided to step down, with former Volvo Car CEO Håkan Samuelsson being replaced by Winfried Vahland as the new board chair. Additionally, board member Carla De Geyseleer will not be seeking re-election at the upcoming annual shareholder meeting.
In an effort to address these issues, Polestar has put forth Christine Gorjanc and Xiaojie Shen as potential new directors. The company has been struggling with a decline in its share price for the past two years, following its listing on the New York Stock Exchange through a blank-check merger in 2022. The challenges faced by Polestar include slower-than-expected production ramp-up and a decrease in the demand for electric vehicles.
Recently, Nasdaq warned Polestar that it could face delisting after failing to submit its 2023 annual report to the US securities regulator on time. Håkan Samuelsson played a key role in the stock market listings of both Polestar and Volvo. Earlier this year, Volvo distributed a significant portion of its Polestar shares to shareholders, primarily entities of parent company Geely, in an effort to alleviate pressure on its own financial position.
Despite these efforts, Polestar has continued to rely on its largest owners for additional funding. The company aimed to achieve a more defined and diversified ownership structure with the share transfer and new ownership arrangement announced in February. CEO Thomas Ingenlath expressed that this restructuring would position Polestar as a stronger and more independent brand within the Geely ecosystem.
However, Polestar’s shares have continued to plummet by approximately 69% this year, resulting in a market valuation of $1.5 billion for the manufacturer of the Polestar 4 SUV. The ongoing challenges faced by Polestar underscore the complexities of operating in the competitive electric vehicle market and the importance of effective leadership in navigating such turbulent times.