Volvo Shifts Financial Support Away from Polestar EV Brand: What’s Next, See ALL Details

Mudassir Ali
By Mudassir Ali
2 Min Read
Volvo Shifts Financial Support Away from Polestar EV Brand: What's Next, See ALL Details

Volvo has decided to pull the plug on funding for Polestar, its electric vehicle (EV) subsidiary, signaling a significant change in their financial relationship. While the collaboration between the two brands will persist in areas such as manufacturing and research and development (R&D), Volvo’s decision marks a new chapter for Polestar’s financial backing.

Geely Steps

As Volvo steps back from funding Polestar, Geely, the Chinese automotive powerhouse that owns both companies, will assume full financial and operational responsibility for Polestar moving forward. This transition could also see Geely becoming a major new shareholder in Polestar, according to Volvo’s official statement.

Volvo’s Stock

Following Volvo’s announcement to cease funding for Polestar, the company’s stock experienced a notable surge of over 30 percent. This move reflects investor optimism regarding Volvo’s strategic realignment and financial focus. However, Polestar’s journey hasn’t been as smooth, with its shares declining by more than 83 percent since going public.

Financial Challenges

Polestar’s exclusive focus on EVs, coupled with a limited lineup and slow introduction of new models, has posed financial challenges for the brand. Despite efforts to reduce external funding needs and progress in securing additional financing, Polestar faces hurdles on its path to financial stability.


Despite financial uncertainties, Polestar is gearing up for significant developments in the coming years. The launch of the Polestar 4 in select markets and the anticipated debut of the Polestar 5 sedan and Polestar 6 roadster offer glimpses into the brand’s future aspirations. However, challenges such as delayed releases and platform-related software issues loom over Polestar’s ambitious plans.


While Volvo’s decision to halt funding for Polestar marks a significant shift, the collaborative efforts between the two brands remain intact. As Polestar navigates its financial challenges and charts its course forward, the automotive industry eagerly awaits the outcome of its strategic endeavors.

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