Hyperdrive
Polestar’s Lukewarm Debut Sends Troubling Signal for EV Makers
- Inflation, slowing economy hurt appeal of unproven companies
- ‘Investors are going to have to revalue these EV names’
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The lukewarm reception for Polestar Automotive Holding, the latest electric-vehicle company to go public in the US, is sending an ominous message to other startups: The purge isn’t over.
Yes, the auto industry is due for a transformation as oil prices soar and the need for cleaner transportation becomes increasingly apparent. But, runaway inflation and a looming economic downturn is making investors leery of speculative investments, which includes EV makers despite the allure of the coming revolution.