Polestar Seeking Investors

Polestar is seeking investors willing to invest $500 million in electric vehicles.

The company is going to release a new model, despite bad reviews on the Polestar 2.

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Polestar, which has been plagued by recent setbacks, is seeking for new investors. According to Bloomberg, Volvo’s subsidiary brand plans to raise about $500 million in the next investment round.

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New investments will not only help Polestar overcome the crisis period but also raise the company's value to $6 billion. This will turn the brand into a worthy competitor to Tesla and China's NIO.

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Funds can also be invested in the development of the new Precept EV with an interior made from recycled plastic bottles and fishing nets, a prototype of which Polestar showed back in April. A month ago, the company confirmed that the concept would be launched in a series but did not give a time frame. It is also unknown whether the “commercial” version will get unusual materials used in the concept.

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To date, the brand has two models: Polestar 1 and 2. In 2019, the Polestar 1 was launched into production at the Chengdu factory in China. This March, it was followed by the Polestar 2.

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However, there were some problems with the Polestar 2. In early October, the brand had to recall all cars sold due to mass complaints about the sudden shutdown of electronics, including safety-related functions. At the end of the month, another defect was discovered. That time, it was related to the high-voltage coolant heater (HVCH). The new recall affected 3,150 Polestar 2 vehicles.

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But Polestar's failures did not end there either. Citroen secured a ban on the sale of Polestar's models in France and claimed compensation in the amount of €150,000. It was declared that there were some similarities between the Polestar logo, the Citroen logo and the DS logo, which “damaged the French company's reputation”.

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