Volvo to Cease Financial Support for Electric Vehicle Brand Polestar

As the EV market faces a slowdown, Geely steps in to fund Polestar, signaling a potential industry shakeout.

Volvo announces it will no longer financially support Polestar, its electric vehicle brand, and plans to offload some of its stake.
Polestar has struggled against competitors like Tesla, facing significant losses despite critical acclaim for its vehicles.
Electric vehicle sales are expected to decline for the first time in seven years in 2024 in Germany, signaling a broader slowdown in the EV market.
Geely, which owns a majority stake in Volvo and Polestar, will take over funding for Polestar, aiming to consolidate and streamline investments.
The global EV industry is experiencing a shakeout, with increased competition and a slowdown in demand leading to tough decisions for companies.