GEELY AUTO(HK:00175) Xin Lang Cai Jing·2025-04-16 09:32Core Viewpoint - Polestar's termination of its joint venture with Geely's Meizu marks a significant shift, indicating a potential exit from the Chinese market due to poor performance and strategic misalignment [1][2]. Group 1: Company Performance - In 2024, Polestar's sales in China were only 3,100 units, plummeting to 119 units in January-February 2025, far below Geely's expectations [3]. - Polestar's global sales reached 12,304 units in Q1 2025, a 76% year-on-year increase, primarily driven by the European market, which accounted for nearly 70% of total sales [3]. - The company's net loss expanded to $541 million in the first half of 2024, with cumulative losses exceeding $2 billion, and its stock price has fallen by 90% since its IPO, leading to multiple delisting warnings from Nasdaq [3]. Group 2: Strategic Challenges - Polestar's product lineup is limited, with only two models available, and its pricing does not compete effectively with brands like NIO and Li Auto [1]. - The company has faced significant management instability, with seven different heads for the China region in eight years, leading to a lack of strategic continuity [1]. - Geely has been consolidating its brands, closing underperforming ones and reallocating resources to more promising brands like Zeekr and Galaxy, further marginalizing Polestar [3][4]. Group 3: Future Outlook - Polestar plans to launch the four-door GT model Polestar 5 and the compact SUV Polestar 7 in late 2025, aiming for an annual sales growth of 30%-35% [4]. - However, the company’s product iteration speed lags behind Chinese competitors, and its brand recognition outside Europe is weak, raising doubts about its ability to reverse its current decline [4]. - If Polestar fails to solidify its position in the European market and achieve profitability by 2025, it may face severe survival challenges [4].