The chief executive of Polestar fears the electric vehicle revolution is at risk on losing its focus on tackling climate change.
While speaking at the ongoing Shanghai Auto Show, Thomas Ingenlath suggested that some electric car manufacturers are placing too much focus on their valuations rather than looking to revolutionize the automotive industry.
“What is at stake here is not how much financiers think a company is worth, but the chance to revolutionize the auto industry, turn it electric and at the same time make a huge contribution to protecting the climate,” Ingenlath said. “Put against these important themes, a market valuation is a very insubstantial and meaningless marker of success.”
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Ingenlath went on to express his disbelief that there are EV startups worth billions of dollars that have yet to build a single vehicle.
“It frankly amazes me that there are companies out there that are worth billions of dollars and have never made a car,” he said. “I would like to today state clearly that the electric mobility revolution needs to be grounded in reality, not dreams.”
He also acknowledged that we are on the cusp of an EV revolution as the technologies used by them become more advanced and economical.
“These powerful trends mean that the automotive industry is now in a position to make the most significant contribution to positive climate change in history. Of course, we want to talk about growth. But by that I do not mean growth in investment levels, valuations or price-to-earnings multiples. I mean real growth. Growth in consumers switching to EVs and growth in harmful emissions being eradicated.”
Ingenlath’s speech comes just a week after the Swedish car manufacturer announced it had raised $550 million from a group of long-term financial investors, marking the first time external investors have backed the company.
