Volvo Cars has announced that it will cease funding for its subsidiary, Polestar Automotive, a move that has seen Volvo's stock price surge by 30%. The decision comes as the company reported a 10% year-over-year sales increase in Q4 to $14.16 billion. Following Volvo's announcement on Thursday, the responsibility for Polestar will be transferred to Geely, Volvo's largest shareholder and a Chinese automotive company. This shift reflects broader changes in the electric vehicle industry, signaling a potential 'shakeout' as companies reassess their investments and strategies. The news impacted the stock market, with Volvo shares rising significantly and Polestar's stock, traded under the ticker $PSNY, falling by 12%.
Volvo breaks up with Polestar and sees its shares soar $PSNY https://t.co/xStmTKkvvY
BREAKING: "Volvo Car said it won’t provide further funding to Polestar, the electric-car maker it created with Volvo’s Chinese owner Geely—the latest EV retrenchment by the global auto industry." https://t.co/jn6QVC5Gnc
Volvo will no longer fund Polestar and will transfer responsibility to Geely. Volvo shares are up 30% and $PSNY down 12% on the news. https://t.co/70fr1YIUtq
NEWS: Volvo announced today it will stop funding Polestar and is handing responsibility for the luxury car brand over to Volvo's top shareholder China's Geely, due to disappointing results. https://t.co/LhhsyRrRbB
⚠️ ANALYSIS-VOLVO'S POLESTAR TROUBLES SIGNAL 'SHAKEOUT TIME' FOR EV INDUSTRY (Reuters) The shakeout in the global electric-vehicle industry is picking up speed. Chinese automaker Geely's move on Thursday to take over funding of struggling EV maker Polestar from Volvo Cars is… https://t.co/y8VY1poRIU
$PSNY Volvo stops funding Polestar: Volvo $VLVLY stock soared over 20% after announcing the cessation of funding for subsidiary Polestar Automotive and reporting a 10% YoY Q4 sales increase to $14.16B. $TSLA to the moon https://t.co/mjQVVS9mG1