Both Polestar and Volvo will continue to work together on R&D and production, but Volvo has said it will no longer give Polestar money. Both automakers are owned by the Chinese company Geely, which will now provide Polestar with full operating and financial support. Reuters says that after the ruling, Volvo’s shares went up by more than 30%. Polestar is working on two new electric cars even though it is having money problems. Yes, Volvo and Polestar are splitting up their money. Volvo recently said that it would no longer sponsor Polestar, a company that makes a rising number of all-electric cars. Polestar will now get all of its operational and financial help from Geely, the big Chinese company that owns both names. Volvo said in a press statement that Geely could become a “significant new shareholder.” Polestar gets its stuff together Polestar and Volvo will no longer be able to get money from each other, but they will still work together on tasks like research and development and production. Of course, Volvo makes money when it sells cars and SUVs with internal combustion engines, as well as its future electric cars, like the EX30 and EX90. Polestar, on the other hand, only sells electric vehicle (EV), and sales of these vehicles are going down around the world. The company has had a hard time because it is an all-electric brand with few models (the Polestar 2 is the only one sold in the US right now) and a slow release of new models. Reuters says that Volvo’s stock went up more than 30% when the market opened because the company decided not to pay Polestar anymore. Reuters says Polestar’s stock has dropped more than 83% since it went public for the first time in June 2022. Polestar “reduced its expected external funding need to approximately $1.3 billion until targeted cash flow break-even in 2025” because of its money problems, a press statement said. The business said that it is making progress in getting the extra outside cash it needs. What’s Next for Polestar? Polestar’s future is still unclear, but 2024 is likely to be a very important year for the business. It came out with the Polestar 4 in Australia, China, and Europe. It will come out in the US later this year. The Polestar 4 is different because it doesn’t have a back window. The Polestar 3 SUV has already been pushed back until the first quarter of 2024 because of software problems with its shared base. The Volvo EX90 is also affected. The beautiful Polestar 6 roadster will come out in 2026, a year after the sleek Polestar 5 car, which came out in 2025. It would be a shame if Polestar couldn’t make the 5 or 6, but the way things stand right now, it looks like neither model is possible.
