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This Hot EV Startup Is the Real Deal

This Hot EV Startup Is the Real Deal

Tesla Inc. (Nasdaq: TSLA) has been on an incredible run this past month.

The electric vehicle (EV) maker has soared over 50% since October 4.

The automaker is now worth over $1 trillion.

It’s valued higher than every other car company on the planet combined.

If you bought TSLA stock, then congratulations on your huge gains!

But if you don’t own it yet, TSLA is starting to look awfully pricey.

Fortunately, there’s an EV company you’ll be able to buy soon at a bargain…

An EV Startup With a Proven Track Record

You may have seen commercials for a Swedish EV startup called Polestar.

Volvo and Chinese company Geely own the automaker.

Its Polestar 1 luxury car came out in 2019.

polestar ev

And its Polestar 2 sedan launched in 2020.

polestar 2 sedan

Polestar’s EVs look great. But we’ve had our share of overhyped EV startups in the past.

For example, Lordstown Motors and Workhorse are under investigation by the SEC.

And the founder of Nikola faces three charges of criminal fraud.

But Polestar has a “proven track record,” says CEO Thomas Ingenlath.

“We actually deliver cars. We have 29,000 deliveries this year,” he noted.

Polestar has a leg up on its competition because it uses Volvo’s Chinese factories.

That means it didn’t have to start from scratch like other EV makers.

Polestar Looks Like a Bargain

Rival EV startups are grabbing headlines — and huge market valuations.

But they aren’t making nearly as many EVs as Polestar.

For example, I wrote about Rivian in September.

Wall Street is valuing the EV startup at up to $80 billion. But it only plans to deliver about 1,000 EVs this year.

And Lucid Motors has a $58 billion market cap. But it’s only building about 500 cars this year.

These are puny production numbers compared to Polestar.

Yet Polestar plans to go public next year with a valuation of only $20 billion.

You can compare these EV companies, as well as Tesla, in the chart below.

ev companies 2021 production

These numbers make Polestar look like a bargain.

What’s Next for Polestar

Polestar has big plans for 2022 and beyond.

Its Polestar 3 SUV starts production next year.

It will be the first Polestar vehicle built in the U.S.

Polestar will then launch its cheaper Polestar 4 SUV in 2023.

Finally, it plans to debut its Polestar 5 luxury sedan in 2024.

The company expects to sell 290,000 EVs in 2025.

polestar volume by model

That’s 10X growth from its 2021 sales!

This uptick in market share should make Polestar profitable as soon as 2024.

And the company expects its profits to reach $1.6 billion in 2025.

polestar expected profit

That’s awesome growth considering Polestar only started making EVs a few years ago.

By comparison, it took Tesla 17 years to start being profitable.

There’s a Better Way to Go Public

In the past, initial public offerings (IPOs) were how companies went public.

The thing is, IPOs are great for Wall Street insiders but not for the company going public.

They also screw over individual investors, who get in late at a much higher price.

Fortunately, Polestar won’t do an IPO when it debuts on the stock market next year.

That’s because there’s a better way for the hottest startups to go public.

It’s a type of investment that offers attractive pricing to individual investors.

That way, they can get into the stock before Wall Street insiders send it soaring.

And on November 9, Ian King will tell you everything you need to know about these investments.

He’ll also explain why “profit trigger events” are a huge deal.

You can sign up for Ian’s webinar now by clicking this link here.

Regards,

Jay Goldberg

Assistant Managing Editor, Banyan Hill Publishing

 

Morning Movers


From open till noon Eastern time.

 

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