Stocks of companies based in Sweden and China manufacturer of electric vehicles Polestar Automobile ( PSNY 20.16% ) Shares surged significantly on Friday following the announcement from the company that it had initiated the manufacturing of a new electric SUV in the United States.
By 11:30 a.m. ET, Polestar’s stock had increased by approximately 16.6% compared to the previous day’s closing price.
Polestar has begun manufacturing its electric SUV for families in the United States.
Polestar announced that manufacturing of the Polestar 3, a luxurious electric SUV, has commenced at a facility in South Carolina that is owned by the company. Volvo Cars Polestar is a collaboration between Volvo Cars and the Chinese automaker that owns Volvo. Geely Auto Holding .
Polestar, a company based in the United States, is planning to increase production of its Polestar 3 model in locations other than China to circumvent tariffs imposed by the United States and the European Union. The image is sourced from Polestar.
Polestar is based in Sweden, however, up until now, all Polestar electric vehicles intended for sale in the United States and Europe were manufactured at a Geely facility in China. The stock of Polestar has experienced a notable decline this year due to worries that tariffs imposed by the European Union and the United States could hinder the competitiveness of Polestar’s electric vehicles produced in China.
The recently launched Polestar 3 is an SUV with three rows of seats, specifically tailored for the American market. Manufacturing of the vehicle started in China towards the end of the previous year. Polestar 3s assembled in South Carolina will be distributed in the United States and Europe to circumvent high import taxes.
Polestar plans to manufacture an additional model in a location outside of China by the year 2025.
Polestar confirmed its intention to start production of the Polestar 4, a compact and sporty crossover manufactured in China, in South Korea by 2025 to circumvent tariffs. Additionally, the company addressed a longstanding regulatory concern with the Securities and Exchange Commission by submitting its Form 20-F annual report earlier this week.
Polestar is scheduled to announce its second-quarter financial results before the opening of the U.S. markets on Thursday, August 29th.
