Michael Lohscheller, the CEO of EV manufacturer Polestar (PSNY), said in an interview with Bloomberg that Elon Musk‘s increasing involvement in global politics is driving away some Tesla (TSLA) customers and creating an opportunity for Polestar. Indeed, Lohscheller stated, “We get a lot of people writing that they don’t like all this.” As a result, Polestar now plans to target disgruntled Tesla owners as potential customers.
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Polestar could benefit from this strategy, especially since Tesla saw its first annual vehicle sales drop in over a decade. Despite this, Lohscheller praised Musk as a “very successful businessman” who has achieved incredible things with Tesla. However, Lohscheller strongly criticized Musk’s endorsement of the far-right Alternative for Germany party by calling it “totally unacceptable” and “pure arrogance.”
Nevertheless, Polestar is looking to increase its retail sales by up to 35% annually over the next three years by using a more traditional dealership model and launching new vehicles. The company is also working to reduce its significant monthly expenses and secure additional funding. In fact, despite securing over $800 million in December, Polestar is looking to raise an extra $400 million through a loan facility.
Which EV Company Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts are essentially equally bearish on both. Indeed, both TSLA and PSNY have price targets that imply over 20% declines from current levels.
