Volvo Reduces Stake In EV Brand Polestar

Volvo is cutting its stake in EV automaker Polestar from its current 48 percent to just 18 percent, subject to shareholder approval. This news comes as the Swedish brand continues to lose money. At least part of Polestar’s slow growth is electric vehicle demand remaining below levels predicted by analysts.

According to Bloomberg reporting, the move will see Volvo divest itself of 62 percent of its Polestar shares, transferring them to its own stockholders.

If the plan goes ahead, much of Volvo’s ownership will be transferred to Zhejiang Geely Holding Group. Geely holds a 79.5 percent stake in Volvo and will, therefore, get the lion’s share of the Polestar stocks. The plan will first have to be approved by Volvo’s shareholders at the annual meeting scheduled for March 2024.

Geely has already been providing funding to Polestar to keep it afloat, alongside cash infusions from Volvo. Geely chairman Li Shufu personally owns 39 percent of the brand. That makes it highly probable that Geely will accept the plan and take over ownership of the divested shares from Volvo. The EV brand’s CEO, Thomas Ingenlath, says the move will make it a “strong, more independent brand” under the Geely umbrella.

Geely says it will continue funding the brand. Meanwhile, Volvo – which is struggling with its own finances – will offer non-monetary support. That means sharing research and development and helping set up manufacturing.

Polestar, formerly Volvo’s performance division, became a standalone brand and declared it was going all-electric back in 2017. Volvo subsequently announced in 2021 that it would be an all-electric car company by 2030. Polestar was earmarked to develop hybrid engines for its lineup while its parent Volvo would work at creating the necessary EV batteries.

Late in 2022, the Swedish brand pulled the sheets on the 2024 Polestar 3 electric crossover. It’s slated to be a direct competitor to the Cadillac Lyriq in the utility vehicle space. The five-seater’s base configuration offers 483 horsepower and 620 pound-feet of torque. An available Performance Pack boosts this to 510 horsepower and 671 pound-feet of torque. The vehicle has an impressive estimated range of 379 miles on a single charge. Currently, the brand’s only model available to order in the U.S. is the Polestar 2. Polestar calls it an “electric performance fastback.” It goes toe-to-toe with the Tesla Model 3 with no direct rival from GM.

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Rhian Hunt:

View Comments (44)

  • Polestar suffers from the same problem all EV makers are having, production costs are too high and range or charging is too low or slow. Tesla has basically kicked everyone to the curb and they are doing fine. There will be an extreme end of the year shake up when CATL and BYD drop battery cell prices by 50% mid year and that will go into packs by years end. Since that is like 50% the cost of a vehicle it will change everything. If Tesla reduces prices by 20 or 30% while still making great margins? Good bye ICE hello EV revolution.

    • Tesla only makes money because the feds route 3 billion from Chrysler, 2 billion from ford and over a billion from GM, as well as billions more from other companies. Once the credits stop, they are sunk.

    • Are they doing fine? Because having to drop their prices to prop up demand because they don’t have ICEs to fall back on doesn’t tell me things are “going fine” with them. Business Insider did a whole article on the real reason for the pricing drops and its not looking good for Tesla.

    • I think your mistaken. EV's are rocking and climbing even faster than ever. Just because some auto makers are not delivering them don't mix that up with EV's are dying. Its a popular advertising logo but the numbers don't support it. AutoLine just did a show where they said Tesla picks up more new buyers. Li Auto (chinese EV maker) had a record Q4. This year the production increase of EVs is predicted to be 20 to 30%.

      • Um, climbing faster than ever or slowing? It is growing but not as fast. In the US the restrictions on who gets the tax credits certain hurt. There is talk of even having a quarter over quarter sales decline. EV's will continue to grow, just slowly as the infrastructure isn't there plain and simple; that and costs... If battery prices can make some good swings down and they can add in the solid state batteries that give a ton more range and faster charging that will certainly help change the buyers perspective I'd say. As the older ICE crowd gets replaced with the younger more technology accepting crowd you will continue to see EV's grow in many sectors.

        • EVs are increasing at a rate of about 20 to 30% per year. Number one car in the world for 2023 Model Y.
          >>EV’s will continue to grow, just slowly as the infrastructure isn’t there plain and simple; <>If battery prices can make some good swings down
          According to BYD and CATL they are dropping prices of cells 50% by June this year. Packs will take about a quarter to catch up. Since thats the most expensive part Q3 might be below price parity for Tesla EV's. Ford and GM and others have prices too high and features too low. Its why they are not as competitive. Hyundai and Kia on the other hand are doing OK even without a rebate.

          • Incorrect,

            EV sales numbers are decline

            As is the number of normal vehicle sales, but used and normal vehicle sales are declining at a faster rate as the only people who are buying EV’s are the wealthy getting bailouts and bonuses from Bidenomics. The working man who has always made up the lions share of vehicle purchases is out of the market right now. Next year as the policy direction 180’, EV’s will be dead.

            And don’t pull the “CAFE” and “California” card on me, as there’s talk about Desantis or Ken Paxton as AG who will dig into Newsoms and Swallwells ties to china, as well as portlands leadership who let the CHOP zone persist that resulted in dozens of murders.

          • What numbers are you using? 2023 EV sales were up over 40%. Are you using January's year over year numbers? I know Tesla's are moving toward a record Q1. EV's are growing sorry you have so much hate. They make so much more sense and are lower in lifetime costs. This years growth is estimated to be about 20 to 30%. Let me know where you get this data from.

      • Could be, I guess, but it doesn't look like GM is bullish on EVs right now. From what I've read they are cutting EV production severely and dusting off the plans for their hybrid portfolio. I'm not ready to replace my ICE vehicles yet. EV problems include, not enough range, not enough chargers, too long to charge and right now, too expensive for what you get. If prices fall by 30%+ and I determine that I need a short-range vehicle, I might be in the market.

        • Charing speed at my home is about 10 seconds when I plug it in after work and sleep on it.
          Far as chargers go there are a lot of chargers and so far there is not a place I have not been able to travel with my EV. Maybe if your in Alaska or Wyoming?
          Charge speed are not fantastic when traveling but not bad either. Depends how many miles you plan to rack up in a trip. If its under 500 its really not bad at all.

          • That is an amazingly fast and powerful charger to do a charge in only 10 SECONDS! You don't even have to sleep on it. Blink a couple of times and you are done!!

        • Here is something you are not considering. 18 states have signed on to eliminate ICE sales. Thats coming quick. These states represent over 40% of the car market in the US. China the largest market makes it almost impossible to get tags. The EU is also going to EV's. Where ya going to sell that gas car when all these mandates hit? The used market for EV's is cheap, which gives a lot of people a chance to get an EV for an affordable price. So I think there will be more converts and once you convert, you really never want to go back.

          • Here something to consider, most those states are trying to recind that, and those that aren’t are really close to ending up in federal receivership financially, right when the national level is turning hard right.

            Here’s one more thing to consider, the more you talk, the more we get to laugh 😂

          • I bring you a fact you are say try to run to defend ICE? Has it been rescinded? About state budgets, thats not what you asked. You an ICE mechanic? You will have enough junk to repair for the next decade or so.

          • The only "junk" in the used market will be the EVs with worn out batteries. Without ICE cars, there will be virtually no long term used EV market/availability, as the cost of a battery pack, at least for now, is exorbitant. Worse, many EV manufacturers (including Tesla, I think) have only a 6-year battery warranty. If I recall, Tesla used to have a 10-year warranty. The cost of a replacement battery pack is $20,000-30,000 in some cases,if you can find one. For example, my dad almost bought a Chevrolet Volt several years ago, but he's so glad he didn't, as replacement battery packs are scarce, and cost $28 000 to buy and install. I agree with Porsche and Toyota, who, along with GM, Ford, and numerous others (both automotive and non-automotive, and even the Canadian government), who has announced allocations of funding totaling billions of dollars for perfecting synthetic/carbon capture/carbon neutral fuels. Interestingly. Porsche already operates a synthetic fuel plant in Chile. This, combined with the growing environmentalist backlash against EVs versus synthetic fuels (EVs are certainly not carbon neutral, frustrating and angering a growing number of environmental groups), lends credence to the theory that EVs could be merely a "bridge" to a more sustainable future powered by ICE engines running on synthetic fuel.

          • You follow EV's? You know many are getting over 200K miles without issue. There is some range loss but surprisingly not as much as anyone expected. Packs at the end are recycled and worth more than a junk ICE car.
            >>The cost of a replacement battery pack is $20,000-30,000synthetic/carbon capture/carbon neutral fuels.environmentalist backlash against EVs << Not seen that since the emissions is still zero and after 1 year of use makes ICE car look like the smoker it is.
            Why not concentrate on progress rather than going backwards. New batteries in about 2 years will have double the energy density and can charge twice as fast. That fixes most of the objections everyone has been having.
            Forgot to add Tesla still has 10 year guarantee.

          • And when the California mandate is jettisoned either through the courts or executive decree, those 28 states will be SOL and will have to find another way to virtue signal.

          • Why would it be jettisoned ? This is a states rights issue. They can do this as a state. There is nothing in any fed statue that can stop them.

          • And when the California mandate is jettisoned either through the courts or executive decree, those 18 states will be SOL and will have to find another way to virtue signal.

          • Except Connecticut is rolling back that law. And there is already alot of backlash from dealerships in my state of NJ. As for China, well yeah. Its authoritarian. If tomorrow the CCP decides everyone whear tie-dye shirts, you better comply or you will get paid a visit by the government police. So using China as an example is moot. Any place with no free market (because let's be honest. A market heavily controlled by the government is NOT a free market) forcing EVs down their peoples throats will have sales. Doesn't mean other free markets will go with it.

        • If I decided to first open a non-GMO bakery and start having hipsters walking into my bakery then yes. I will be "rocking and climbing." The problem is those hipsters now have their non-GMO bagels and now I need everyone else to buy them or else I start missing my rent payments. But everyone else doesn't want non-GMO bagels and I don't bake GMO loaded bagels to fall back on. So now I have to pull an Elon and sell my non-GMO bagels at cheaper prices than Dunkin Donuts.

      • You're not wrong Bob, but 90% of commenters can't fathom this growth despite glaring numbers and hate any BEV on principle, which is understandable based on looming mandates. But, the fact is, Tesla alone in the US already out sells GMC, Jeep, VW, Subaru and Ram with basically two vehicles with the gap widening. Collectively BEVs will surpass Ford US sales in 2024, and GM's US sales by 2025, that's using low ball 20% growth rate - may even surpass GM in 2024.

        • Sarcasm??? I’m struggling to tell

          The jeep US brand almost outsold all Tesla USA sales in 2023.

          Tesla 540,000
          Jeep 660,000

          Now Tesla global sales are much higher, on par with the Ford F150 US sales, not the total ford US Sales, nor the Global ford Corporate sales, just the US F150. T

          • Of course Tesla sells world wide of course trounces Jeep
            This years Cyber Truck sales will be added to the bottom line as it ramps up
            and it will be closer to Ford Sales by the end of next year with full Cyber Truck
            ramp. in 2025 the Model 2 Starts and GM comes into play next Toyota.
            I think It will catch GM by the end of 2025. 2.6 million is doable.

          • Why does commenting facts about EV's make you think people are paid or a troll?
            Your sensitivity makes me think your hurt by progress and change? You know
            oil companies get a lot of tax subsidies to supply the black goo. Every time you fill that
            tank you are more than likely paying some Saudi prince. Is that middle east wars for oil bother you? Then maybe thing about change to American made Electric cars. Tesla most American made car period. GM/Ford not even in the top ten. They do pay for a lot of advertising though. So maybe your support is paid for?

          • Okay, Greta.
            Facts: US producing our own nat gas. Most of our oil imports come from Mexico and Canada.
            Facts: EV makers except for Tesla cutting back production schedules in the US and Europe.
            Keep trying. Running out of potential early adopter lab mice .

          • Phil you need to check your facts. You will find that we exported our oil and we imported oil to make our gas, even when Trump was president. Crazy but true. Growth of EV's was over 40% and this year add another 20 to 30% while ICE car sales are shrinking. Peak ICE car sales was in 2019 and been slowing ever since. EV's have been growing. They are just better cars. Nothing to be angry about.

          • US is a Net Exporter of natural gas. We have an 86 year supply to meet our own needs . 80% of our crude imports come from next door, Mexico and Canada .
            Paid "EV evangelist" ?

          • We exported our lighter crude and imported the heavier crude from the Middle East because that's what many of our refineries are set up to process. For a while there we were net exporters of oil. I'm still struggling with the federal government shut down of the plan to export LNG to our allies in Western Europe, particularly with the Nord Stream 2 escapade. Rivian and Lucid are both on the edge right now with shrinking sales, although that may be more about product pricing and interest rates than anything else. They are forecasting a tough 2024 and hoping for sales level with 2023. Interestingly, EV inventories have increased by 506% from a year ago.

          • Jeep global sales are 60% of Tesla totals. Chrysler group global sales are 10X Tesla, with fiat alone matching total sales, and Chrysler revenue is still larger globally than Tesla.

  • Why is it necessary to have a performance crossover with =/- 500 HP? That's like only selling Corvettes in the ICE vehicle market. Wouldn't the cost for the battery be down if a vehicle only had maybe 200 HP? Speeding around at gut wrenching acceleration uses up your battery charge much more quickly and makes it more likely that you will strike another vehicle.
    Of corse all the vehicle ads I see on TV show them speeding around town racing with another vehicle to see who gets to the big box store faster or out in the desert raising clouds of dust. What happens when you run out of charge in the middle of nowhere after you use the battery to light up your campsite?

  • Random Information provided in articles written 11/23:

    In early February, EVs cost consumers an average of $65,202 during the first five years, while gas vehicles cost $56,962, the National Automobile Dealers Association said.

    Lifestyle makes a difference and a part of that is being able to keep driving trips short, having chargers nearby, which usually means city living, experts say. They also need time to charge their cars, which takes longer than refueling at a gas station, and working chargers.

    A J.D. Power survey earlier this year said nearly 21% of consumers show up at a charging station only to find it’s broken. Additionally, overall satisfaction with speedier Level 2 public charging, which accounts for 71% of all public charging in America, declined 11 points.

    EV sales are expected to keep rising, with “the market firmly on track to surpass 1 million for the first time ever” in November, Cox said.

    Still, as EV availability has lately grown “exponentially,” consumer acceptance has grown only linearly. “Those trends will likely continue, making for some very interesting market dynamics in the years ahead,” it said. “Change is never easy.”

    • >>In early February, EVs cost consumers an average of $65,202 during the first five years, while gas vehicles cost $56,962, the National Automobile Dealers Association said.<>Lifestyle makes a difference and a part of that is being able to keep driving trips short, having chargers nearby, which usually means city living, experts say.<>A J.D. Power survey earlier this year said nearly 21% of consumers show up at a charging station only to find it’s broken. <>“Change is never easy.”<< As I can tell from reading this forum but I think adoption will come quicker and
      quicker every year.