The company is aiming directly for the U.S. market with its latest SUV.
Never underestimate the power of a product launch into a large market, particularly in the auto industry. Scandinavian vehicle maker Polestar Automotive (PSNY 20.16%) announced that the production of its latest electric vehicle (EV) has begun in the U.S., and investors were clearly impressed with this news. According to data compiled by S&P Global Market Intelligence, as of Thursday night Polestar’s share price had risen more than 10% week to date.
Production on both sides of the Pacific
That model is the Polestar 3 luxury crossover SUV, which will soon come rolling out of the company’s South Carolina factory. Polestar didn’t hesitate to mention that this makes the model its first to be produced on two continents, in this case the U.S. and Asia.
The Polestar 3 is the company’s latest model. It will soon be joined by another crossover SUV, the Polestar 4.
Polestar is a joint venture of storied Swedish carmaker Volvo and its majority owner, China-based Geely. At the moment, most of its vehicles are produced in the massive Asian country.
In addition to targeting the large and lucrative U.S. market with domestic production, management plans to export the Polestar 3 to Europe. Even though the company has European roots, at the moment it has only a light presence on that continent.
International ambitions
With two major automakers from different parts of the world as its shareholders, Polestar’s ambitions are global. The company said it is “also taking additional steps to diversify its wider manufacturing footprint.” Among these moves is management’s intention to launch production of the Polestar 3 in a South Korean factory in mid-2025.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
