Along the same lines, does anyone have any idea how hard it will be to replace the unit. Is it a simple plug and play module, or does it require a huge disassembly to get to the board?

 

fwiw - a Volvo employee once made a statement to the effect of: "not a replacement - but in addition to".

 

Issue a big slug of subordinated convertible debt to the extent allowed in the senior credit agreements would be one way. I am speculating since we have no access to those agreements.

Interesting. thanks.

I had to look it up: "Subordinated convertible debt is a debt security that is subordinate to other, more senior debt and can be converted into the company's stock at the investor's option. This hybrid instrument carries higher risk than senior debt due to its lower priority in a liquidation but offers investors the potential for equity-like returns. For startups, it's a popular way to raise capital by avoiding complex equity valuation negotiations and allowing founders to maintain control "

so it would seem that one way forward is for Geely to double-down on the Polestar bet. And this makes me better appreciate your earlier statement as well:

If the 5 and 7 fail to launch, they’re done. Dead,dead.

I may be able to better understand just why Volvo is a key player here too. They have invested billions into SPA-3. So now they need to build as many SPA-3 cars as possible. And from Volvo's point of view, it may not matter whether they are Volvo or Polestar branded. Polestar is just another method to sell more cars out of Volvo factories.

 

Interesting. thanks.

I had to look it up: "Subordinated convertible debt is a debt security that is subordinate to other, more senior debt and can be converted into the company's stock at the investor's option. This hybrid instrument carries higher risk than senior debt due to its lower priority in a liquidation but offers investors the potential for equity-like returns. For startups, it's a popular way to raise capital by avoiding complex equity valuation negotiations and allowing founders to maintain control "

so it would seem that one way forward is for Geely to double-down on the Polestar bet. And this makes me better appreciate your earlier statement as well:



I may be able to better understand just why Volvo is a key player here too. They have invested billions into SPA-3. So now they need to build as many SPA-3 cars as possible. And from Volvo's point of view, it may not matter whether they are Volvo or Polestar branded. Polestar is just another method to sell more cars out of Volvo factories.

But Volvo wants their 15-20% margin and then Polestar wants the same. It’s a win for everyone if they cut out the middle man and have Volvo own the brand and sell the cars directly.