Volvo ceases investing in Polestar

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Master of Distraction
Staff member
Volvo Car has announced its decision to cease all further investments in its electric vehicle offspring, Polestar. This direction comes despite Polestar being a joint creation with Geely, Volvo’s Chinese parent company, signaling a significant shift amid broader industry difficulties.


The landmark shift to electric vehicles (EV) within the auto sector has faced multiple hurdles throughout the year. These challenges arise as the market expects an influx of new electric models in dealerships.

Earlier in the week, Renault, the French automotive giant, pulled back on taking its electric vehicle division, Ampere, public. Across the Atlantic, Ford tempered the manufacturing rate of its buzz-worthy electric F-150 Lightning pickup truck. Additionally, Hertz, known for its sizable rental fleet, has disclosed plans to phase out approximately a third of its electric vehicles in favor of those powered by gasoline engines.

Tesla, holding the status as the most valuable automotive company globally, has also issued caution regarding its growth prospects, which is expected to be notably muted this year. Concurrent data has exposed a deceleration in EV sales growth within the United States, along with reports of automakers postponing or downsizing their electric ambitions and increased apprehension swelling among car dealerships.

Investor confidence in the unwavering push towards an electrified automotive future has wavered, evidenced by Volvo’s stock rallying over 20% after revealing their intention to withdraw financial support to Polestar.

 
It's amazing how they destroyed the Polestar brand. Originally, you could get some cool high performance versions of Volvo's with the Polestar options. Then they decided to just make it their electric car division. Now they throw it all away. If I was an investor I would be pretty pissed off with all the money they wasted.
 
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