VOLVO Cars said it would stop funding Swedish EV company Polestar Automotive Holding and was handing responsibility for the struggling luxury car brand over to Volvo's top shareholder China's Geely Holding, reports Reuters.
The announcement sent the Swedish automaker's stock up more than 30 per cent at market open.
The heavy involvement by Swedish-listed volvo Cars in Polestar, where it owns around 48 per cent of the shares, has been criticised by analysts who see the stake as a drag on Volvo's resources.
Like other new EV brands and startups, Polestar has struggled to make headway, particularly since Tesla started a price war last year. The automaker said earlier this month that it had missed its already-reduced delivery targets for 2023.
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The announcement sent the Swedish automaker's stock up more than 30 per cent at market open.
The heavy involvement by Swedish-listed volvo Cars in Polestar, where it owns around 48 per cent of the shares, has been criticised by analysts who see the stake as a drag on Volvo's resources.
Like other new EV brands and startups, Polestar has struggled to make headway, particularly since Tesla started a price war last year. The automaker said earlier this month that it had missed its already-reduced delivery targets for 2023.
SeaNews Turkey
