Debt-Addicted Automaker Polestar Can’t Find an Off-Ramp

Some of Polestar’s latest electric models have no rear windscreen and rely instead on the rear-view mirror displaying a video image of approaching traffic and parked cars. So perhaps it’s not surprising Polestar Automotive Holding UK Plc has backed itself into a corner, both financially and strategically: Last week’s third-quarter results revealed this Volvo Car AB offshoot is losing money and debt remains high. Unfortunately, there’s no obvious escape route.

Valued at $27.6 billion in 2022 after going public via a special purpose acquisition company, Polestar’s market capitalization has shrunk to just $1.3 billion as hopes the brand would become Europe’s answer to Tesla evaporated. Polestar is controlled by Chinese billionaire Li Shufu, but based in Sweden.