Victor Reklaitis of MarketWatch reports that Polestar has been moving away from building its EVs in China, even before this month’s news about U.S. tariffs. Reklaitis writes:
President Joe Biden’s new tariffs on Chinese electric vehicles are widely viewed as not having much immediate impact, and that’s because such EVs aren’t widely sold in the U.S.
China’s EVs are “rightly seen as a future threat,” but Biden’s tariffs on those vehicles and other key Chinese products are “more protective/symbolic than currently disruptive,” Wolfe Research analysts said in a note.
There is one company that’s selling Chinese-made EVs in the U.S. — Sweden-based Polestar PSNY, -6.26%. The company last month said its ownership structure has changed so it’s 24% owned by Chinese automotive giant Geely 175, and 18% owned by Volvo Cars VOLCAR.B, -4.61%, which itself is majority-owned by Geely. […]
Citi’s analysts stressed in their note that Polestar’s American business has been limited, saying sales of the Polestar 2, a sedan, amounted to 7,500 last year, or just 14% of global volume.
The Citi analysts currently have a rating of “Neutral/High Risk” for Polestar’s stock, with a price target of $1.70. Polestar shares closed at $1.28 on Thursday and have lost 43% in the year to date.
Analysts at Citi said they asked Polestar about the higher U.S. tariffs and indicated that the EV maker is still evaluating the Biden administration’s announcement. But the analysts also emphasized that Polestar had been moving away from having its EVs made in China before this month’s news about U.S. tariffs.
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