Polestar (NSADAQ:PSNY) stock is dipping into the red this afternoon. Today, the struggling electric vehicle (EV) maker announced a new joint venture with Chinese tech company Xingji Meizu Group. Indeed, Polestar is hoping to enhance its own presence in the Chinese EV market by way of Xingji Meizu’s advanced software.
According to Thomas Ingenlath, Polestar’s chief executive, the deal marks a commitment to one of the world’s largest markets. The CEO also touts it as an opportunity to enhance Polestar’s own products:
“China is one of the fastest growing EV markets in the world. It’s also a market with very specific consumer trends, including increasing levels of integration between consumer electronics devices and vehicles. By partnering with a company that has a strong complementary competence to our own, we will be able to offer the locally tailored user experience that both drivers and passengers expect.”
Xingji Meizu is a midsized software and user experience tech company. It has about 2,600 employees working on product lines ranging from mobile devices to extended reality wearable tech. Interestingly, this isn’t the company’s first dip into the auto world. Several upcoming EVs will feature its Flyme Auto operating system, including the Lynk and Co 08.
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According to Polestar’s press briefing, the joint venture will work to integrate Xingji Meizu’s “Flyme Auto” tech platform with a Polestar-tailored operating system. This includes in-car apps, streaming services and integration with augmented reality devices.
“The future of our industry will be enabled by integrated devices and platforms that deliver an immersive experience for end users,” said Ziyu Shen, Xingji Meizu’s chairman.”With the support of the progressive technology of Xingji Meizu, Polestar will take the lead in the field of smart mobility. By working closely together, we will create even better products and offer users a seamless experience across a multitude of devices.”
Polestar will split the join venture company’s equity 49%-51%. Xingji Meizu will take the majority, while also taking responsibility for the venture’s financing exceeding the initial capital investment.
On the date of publication, Shrey Dua 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.
