Never underestimate the power of a product launch into a large market, particularly in the auto industry. Scandinavian vehicle maker Polestar Automotive(NASDAQ: PSNY) announced that the production of its latest electric vehicle (EV) has begun in the U.S., and investors were clearly impressed with this news. According to data compiled by S&P Global Market Intelligence, as of Thursday night Polestar's share price had risen more than 10% week to date.
Production on both sides of the Pacific
That model is the Polestar 3 luxury crossover SUV, which will soon come rolling out of the company's South Carolina factory. Polestar didn't hesitate to mention that this makes the model its first to be produced on two continents, in this case the U.S. and Asia.
The Polestar 3 is the company's latest model. It will soon be joined by another crossover SUV, the Polestar 4.
Polestar is a joint venture of storied Swedish carmaker Volvo and its majority owner, China-based Geely. At the moment, most of its vehicles are produced in the massive Asian country.
In addition to targeting the large and lucrative U.S. market with domestic production, management plans to export the Polestar 3 to Europe. Even though the company has European roots, at the moment it has only a light presence on that continent.
International ambitions
With two major automakers from different parts of the world as its shareholders, Polestar's ambitions are global. The company said it is "also taking additional steps to diversify its wider manufacturing footprint." Among these moves is management's intention to launch production of the Polestar 3 in a South Korean factory in mid-2025.
Should you invest $1,000 in Polestar Automotive Uk Plc right now?
Before you buy stock in Polestar Automotive Uk Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Polestar Automotive Uk Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $723,545!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of August 12, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
