Thomas Ingenlath, the founder and CEO of Polestar, has announced his resignation after seven years at the helm of the European Tesla rival. The Swedish-based electric vehicle manufacturer, controlled by Volvo and Geely, is facing significant challenges in the competitive EV market.
Polestar, founded in 1996 as a racing team for Volvo Cars, has struggled to convert its critical acclaim into mass sales. The company's global volumes plummeted by 40% in the first quarter of 2024, with only 7,221 vehicles sold compared to 12,076 in the previous year. This decline has had a severe impact on Polestar's valuation, which has dropped from over $20 billion to approximately $2 billion since its public listing in 2022.
The company's financial woes are evident, with losses nearing $1.5 billion in 2023. In response to these challenges, Polestar announced a 15% reduction in its global workforce in January 2024, affecting around 450 employees. Despite these measures, the company's shares, listed in New York, have continued to decline, falling 41% in 2024 alone.
Polestar's journey as a standalone brand began in 2017, focusing on high-performance electric vehicles. The company's first fully electric vehicle, the Polestar 2, was launched in 2020 and received positive reviews from critics. However, industry analyst Matthias Schmidt notes that the company has struggled to translate this acclaim into significant sales volumes.
"I am very proud of what we've achieved together in the last seven years. We had the vision of an electric premium brand which puts performance and design at its core. And we made it, the dream became reality."
The EV market has faced headwinds across Europe, with slowing demand due to inflation and concerns over charging infrastructure. Michael Lohscheller, a former Volkswagen executive, will replace Ingenlath as CEO starting October 1, 2024. The incoming chairman, Winfried Vahland, emphasized that this change coincides with Polestar moving beyond its "start-up phase" and focusing on developing a coherent product strategy and strengthening its global market presence.
Polestar faces additional challenges from Chinese electric car manufacturers preparing to enter the European market with competitive models. Despite these obstacles, the company remains committed to its goal of producing climate-neutral cars by 2030 and continues to emphasize Scandinavian minimalism in its design philosophy.
As Polestar navigates this crucial transition period, it will need to leverage its partnerships, such as its collaboration with Google for infotainment systems, and its direct-to-consumer sales model to regain momentum in the evolving EV landscape.