Volvo shares surge on decision to axe Polestar funding
Geely Automobile Holdings Ltd.
€0.00
17:19 15/11/24
Volvo shares surged on Thursday after the Swedish company said it was axing funding for electric vehicle maker Polestar Automotive and handing over to China's Geely.
Volvo AB
n/a
16:30 14/11/24
Volvo Cars holds about 48% in Polestar, but the electric car startup has faced stiff competition by Tesla, which has started a price war to keep market share. Shares in Volvo surged 30% at the open and were up more than 20% in morning trade.
"Geely Holding will continue to provide full operational and financial support to the independent exclusive (Polestar) brand going forward," the Chinese group, which is a major shareholder in Volvo, said.
"This support will not require a reduction of Geely Holding shareholding in Volvo Cars," it added.
Polestar last week said it planned to cut around 450 jobs globally, or about 15% of its workforce, amid "challenging market conditions".
Volvo Cars also reported a bigger-than-expected rise in fourth-quarter operating earnings, with operating income excluding joint ventures and associates rising to 6.7bn Swedish crowns from a year-earlier SEK 3.9 billion.
Reporting by Frank Prenesti for Sharecast.com