EV maker Polestar has announced that it’s bringing bi-directional charging — the ability for an electric car to be tapped as a battery for your home or the grid — to Polestar 3 owners who live in California. The feature is one of several ways EV owners can save money with their electric car, by either using less energy overall, or receiving credits for providing their excess power to the grid.
Polestar’s bi-directional charging feature uses direct current, according to the company, and enables “V2H functionality for Polestar 3 customers on the 400 Volt electrical architecture.” Polestar is offering the feature in partnership with home energy company dcbel, who helps administer a California Energy Commission program for installing “home energy stations” that can manage multiple clean energy sources in residential homes, including EVs with bi-directional charging. Polestar claims that using dcbel’s Ara system, customers can “reduce charging costs by up to $1,300 per year and use their car as an energy backup during blackouts for up to 10 days.”
The ability to send excess charge from an EV battery back into your home was originally a major selling point of Ford’s F-150 Lighting. Bi-directional charging has also shown up on GM’s EV lineup and the third-generation Nissan Leaf. Polestar says it’ll continue the development of the bi-directional charging capabilities of its cars and “plans to introduce a wider offer in the future.” While this partnership is the first time the EV maker is offering the charging feature in the US, Polestar already offers bi-directional charging to customers in Germany via a home charger it developed with Zaptec.
If you live in California and own a Polestar 3, you can apply for rebates on a home energy station at dcbel’s website so you can try the feature for yourself.
After major investor Volvo decided to decrease its stake and cut funding for Polestar early this year, the EV company went in search of $1.3 billion of new funding. It raised a $950 million lifeline three-year loan from a banking syndicate led by BNP Paribas, and told investors it has plans to continue raising the rest of the funds this year. Volvo parent company Geely Holdings, a Chinese company whose investment portfolio includes Levc, Lotus, and Smart, became the second-largest shareholder of the company, while Volvo retained 18 percent and is still owed $1 billion through an outstanding convertible loan.
The plan, Polestar told investors, is to target double digit margins by the end of the year, and in its latest earning call, investors were told that the company is “working intensely” to improve cashflow and still has plans to break even by the latter part of 2025. The company’s new facility in South Carolina will play a big part in whether this can be achieved: Analysts expect that it will help with production volume and would qualify its EVs for the US EV tax credit of up to $7,500 depending on the specs of the vehicle, which would hopefully appeal to its customer base. Questions have been raised about whether Polestar will decide to hold off selling the Polestar 4 in the US until it can swap its production over to South Korea in 2025, and therefore avoid the China tariffs.
“There is increased competition, and interest rates have increased significantly, which is why a lot of these companies like Polestar are still having challenges ramping up,” says Andres Sheppard, senior equity analyst at financial services firm Cantor Fitzgerald.
Yet Polestar’s adjusted financial results for 2023, released on Friday after a long delay, somewhat dampen its prospects: Its net losses grew to $1.17 billion, operating losses ballooned by more than 11 percent from $1.29 billion to $1.46 billion, and its revenue dropped by 3 percent to $2.38 billion. These losses were not offset by a 6 percent uptick in car sales. Polestar missed its sales target of 60,000 vehicles (lowered from 80,000 earlier in 2023), delivering 54,600 vehicles last year.
The late arrival of these results was itself a warning sign: If their release had extended into July, Polestar was at risk of being delisted on Nasdaq, a consequence of missing required financial deadlines. The delays have been linked to accounting misstatements.
The company’s share price has suffered a steady decline in the past year, and at premarket open Tuesday had dropped by 8 percent, which Ingenlath said is “not fair.” “We see our current share price does not reflect the value of our company—not now and in the future,” he told investors.
This means that the gap between where Polestar is and where it wants to be is wider than expected. Projected revenue figures collated by market analysis firm Pitchbook show the company is targeting £3.51 billion ($4.43 billion) in revenue this year, and growing that by 145.5 percent to £8.62 billion ($10.9 billion) by 2026. This would be an ambitious feat for the current global head of sales, Kristian Elvefors, the former managing director of Volvo in the UK who took over from Mike Whittington earlier this year. Elvefors has a plan to expand the company’s retail footprint across Asia, Europe, and Latin America in 2025, and to allow customers to configure and order cars online. Troubling, though, is the news that car rental giant Hertz has pressed pause on plans to buy tens of thousands of cars from Polestar this year, rowing back an estimated $3 billion agreement bartered in 2022 that promised to make up a quarter of its fleet with Polestars by 2024.
Amazon was among a number of technology companies at the IAA motor show in Munich. The presence of Amazon, Qualcomm, Samsung and other tech giants underscores how traditional automakers are looking to bolster the tech in their cars.
Arjun Kharpal | CNBC
MUNICH — You’d be forgiven for thinking that the IAA, one of the world’s biggest motor shows, is actually a technology conference, after tech giants like Amazon, Qualcomm and Samsung all showed up for this year’s event.
Their presence underscores demand for traditional automakers to boost the technology in their vehicles, from software to hardware, as they look to catch up with Tesla in the electric car future. Ramping up technology features is also essential to meet buyer expectations in China.
“Tesla and the Chinese start-ups. This is the two-way force they [traditional automakers] are experiencing, driving them to have more user experience in the car,” Mohit Sharma, automotive research analyst at CCS Insight, told CNBC.
They can’t do it alone. Carmakers are looking at tech firms for help, while also trying to work on items like software in house.
Part of Tesla’s global success has come down to its technology in a number of areas, from batteries to Autopilot — its advanced driver assistance system (ADAS), which uses semi-autonomous driving features. The screen within Tesla cars is also akin to that of a smartphone.
Those features are what rival automakers are trying to build and get ahead on.
There are two major operating systems in the smartphone sphere — Google’s Android and Apple’s iOS. That’s not the case in the car world, when it comes to the ever popular infotainment systems and screens.
Auto firms are now focusing on developing their own operating systems, so that using car screens more closely resembles working with the apps of a smartphone.
To that end, Mercedes-Benz revealed further details at the IAA about its self-developed operating system called MB.OS, which will help power various features from the giant screen across the dashboard to the voice assistant in its upcoming EVs.
Swedish EV player Polestar this year created a joint venture with Xingji Meizu — a smartphone maker owned by Chinese auto giant Geely — and plans to launch its own smartphone in December, when the Polestar 4 car begins delivery to customers. Meizu is making an operating system for Polestar cars based on its own product, called FlyMe. The idea is that users would be able to have a seamless experience between the smartphone and Polestar’s operating system in the company’s cars.
U.S. chipmaker Qualcomm was also in attendance at IAA. The company is making a big push into the automotive space, where its chips can be used to help power artificial intelligence applications within vehicles. One example it showed was a car assistant that could find a recipe for chicken enchiladas and add the ingredients to a shopping list.
It’s not just about the screen — automakers are also looking into using all parts of the car to display information. BMW said the Neue Klasse EV models it unveiled on Saturday will have what it calls Panoramic Vision, a heads-up display which projects information on the windscreen at the driver’s eyeline.
To make the drive as comfortable as possible, U.S. EV maker Lucid showed off the massage feature of the seats in its Air Midnight Dream Edition car.
A big part of the focus of Tesla technology has surrounded its Autopilot ADAS. No car can operate autonomously — at least from a legal perspective — but automakers are ramping up the driverless features and capabilities.
Tesla is perhaps one of the furthest ahead with its ADAS features, followed by young Chinese players like Xpeng and Nio.
Many automakers aspire to become major players in the world’s biggest and highly competitive electric vehicle market, China. In a bid to differentiate themselves from rivals, Chinese firms have talked up the tech features of their vehicles, from software to ADAS capabilities — and Chinese customers expect the latest tech perks.
“It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software,” Polestar CEO Thomas Ingenlath, told CNBC in an interview Tuesday.
Heeding that sentiment, foreign companies from BMW to Mercedes are looking to invest heavily in tech development, as they aim to boost EV sales in China.
Volkswagen CEO Oliver Blume on Wednesday said that the company is ramping up its number of software engineers in China.
“We want to operate with China speed in China,” Blume said at the IAA conference.
A Polestar 4 electric SUV is on display during the 20th Shanghai International Automobile Industry Exhibition at the National Exhibition and Convention Center (Shanghai) on April 18, 2023 in Shanghai, China.
Meizu is not a major smartphone player in China with companies like Apple and Oppo among the biggest. And the Polestar smartphone would not be an attempt to grow market share.
Instead, the unusual step of an EV company launching a smartphone comes from a desire from automakers to make the car like a mobile phone on wheels.
“Where you have an opportunity to link these two worlds, without any border … then you can really have a seamless transition,” Ingenlath said.
You can imagine a world where you’re using an app on your phone and you enter the car and that same app is displayed on the car’s dashboard screen, for example.
“I still have problems to get, you know, an SMS displayed,” Ingenlath said of the frustrations with current technology.
Ingenlath added that the phone will be a “premium” device. Meizu is known in China for more mid-tier devices. This will help Meizu push into the high-end device market for handsets too, Ingenlath said.
While it is still unusual for car companies to launch phones, the idea is gaining some traction. Chinese EV start-up Nio plans to launch its first self-developed mobile phone in September.
There are lots of reasons this could make sense specifically in the world’s second largest economy.
It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software.
Thomas Ingenlath
CEO of Polestar
Firstly, there is no Google Android mobile operating system. This means that automakers can customize the operating system on their phone and the car to sync up. For example, Meizu has its own operating system called FlyMe. And the company is making an operating system for Polestar cars based on this.
The smartphone that Polestar releases is also likely to have a similar OS which will make integration seamless.
“It’s not just good enough to bring a great European design to China, you have to be very, very special about what you offer to the market when it comes to software,” Ingenlath said.
“Many OEMs are following Geely and potentially other future players such as Apple if they come up with their own car with their smartphone to provide a holistic and tighter connected experience in every aspect of mobility,” Neil Shah, vice president of research at Counterpoint Research, told CNBC.
An OEM is an original equipment manufacturer and refers to car manufacturers.
Shah said the smartphone would also allow Polestar to bundle software, apps, services and features such as remotely controlling or turning on the car with a phone.
Launching a phone could also help carmakers learn more about their customers’ habits, Shah added.
The Polestar 4 is on sale in China for 349,800 Chinese yuan ($47,890) — that’s more expensive than Tesla’s Model Y which starts at 263,900 yuan.
The Polestar 4 is being positioned as “more premium, more luxurious” than the Model Y, Ingenlath said.
The CEO said Polestar’s customers come from German carmakers BMW and Mercedes-Benz and that the car is being positioned more as a competitor to cars like the Porsche Macan.
