Polestar (NASDAQ:PSNY), an electric vehicle (EV) company backed by Sweden’s Volvo (OTCMKTS:VLVLY) and China’s Geely (OTCMKTS:GELYF), is shocking the industry with a new car. Interestingly enough, the company’s new EV replaces the rear window with a digital screen for the driver. The car also offers a “standard full-length glass roof with optional electrochromic functionality that allows for opaque or transparent usage.”
The Polestar 4 was unveiled at a Shanghai auto show and includes features previously shown in the company’s concept cars. The EV can reportedly go from zero to 60 miles per hour in under four seconds. The car is due for production later this year and the company hopes to deliver 43,000 units next year.
PSNY stock opened today at $3.73 per share and currently has a market capitalization of around $8 billion.
PSNY Stock: What Is the Polestar 4?
U.S. and Chinese car companies are rolling out a host of luxury electric vehicles this year in hopes of catching Tesla (NASDAQ:TSLA), which in turn is cutting prices and scaling production.
The most talked about feature of the Polestar 4 is the lack of a rear window. Instead, the car has a screen up front that shows the view from a camera mounted on the rear of the car. While the 4 has the sloped windows of a sedan, it also has the room of an SUV.
The new car will have an estimated range of 300 miles per charge and is expected to cost $60,000. The EV won’t be eligible for tax credits under the Inflation Reduction Act. However, Polestar does plan to make a lower cost Polestar 3 in South Carolina, which could be eligible for credits.
Polestar is based in Sweden and recently said it produced 12,000 cars during the first quarter of 2023, up about 26% year-over-year (YOY). Polestar estimates total production for 2023 at 80,000 vehicles, up 60% from a year ago. The company is due to report earnings next on May 11.
What Happens Next?
Right now, the luxury EV market is looking saturated. The race is on to make electrics for mid-market buyers who, in the United States, are currently buying hybrids.
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On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
