Polestar has been a true mirror for many electric vehicle manufacturers in which to look at themselves on multiple aspects. A recently founded brand that has been able to position a high-quality product at the level of models as successful as the Tesla Model 3. Last Friday, the Swedish firm went public after its launch on the Nasdaq, thus rising almost one 16 percent on the price of its shares; however, the joys have not lasted long in Polestar as just three days later, last Monday, said shares returned practically to their starting point after falling 15 percentthus ending practically all the profits obtained during those days.
This initial rise is attributed to the enormous interest presented by Volvo’s sister firm among the general public; however, the drop in the price just three days later presents a high degree of uncertainty for other competent manufacturers, who see how the automotive sector, in general, is in a significant decline that is already close to, in some cases, 50 percent of its total price. Due to this, many gurus and experts in the field declare themselves quite doubtful about the financial health of automobile brands in recent months.
To serve as an example, other companies in the sector have seen the value of their shares decline significantly. Such is the case of Ford, who it started the year reaching a value of 25 dollars and today its shares are below 12 dollars; or General Motors, which reached $65 per share and is now positioned at $34, during the same period mentioned above for its competent American. In the case of Polestar, its shares reached $13 last Friday (day of its release on the Nasdaq), while on Tuesday (4 days later) it stood at $10.6. As you can see, the decline in Polestar shares has not been as sharp as some have.
Concerns about the possible general decline in the automotive sector come from the hand of the increase in inflation figures worldwide, as well as the shadow of a possible economic recession in the making. At the same time, this sector is also experiencing major stoppages or delays in the production of vehicles, due to the lack of supplies and the high cost of the main and essential raw materials for the manufacture of electric cars, such as lithium, nickel or cobalt. All of these reasons make most investors highly concerned.
Within the particular electric car market, systematic declines in the share price can also be seen. Among them is Rivian, which has been one of the most affected, since, since its debut in November, its shares have fallen by 64 percent, although the North American company has gone through certain difficulties that have been able to unleash said fall. In Tesla they have also suffered a sharp decline: in the month of January its shares stood at almost 1,200 dollars, while currently they are below 700 dollars.
In Bloomberg, as well as other financial experts, predict that the new electric car companies will not be able to be valued at tens of billions of dollars when historically more established brands make a more pronounced participation in the electric sector, such as Ford, among others. Be that as it may, it is clear that the automotive market is undergoing important changes in all or most of the sections, which may increase over the coming months.