Volvo Car to Slash Polestar Stake as EV Shift Stumbles

  • Carmaker to cut shareholding in Polestar from 48% to 18%
  • Move hands more oversight to Geely, which controls both firms

A Polestar 4 electric SUV.

Photographer: Qilai Shen/Bloomberg
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Volvo Car AB will slash its stake in Polestar Automotive Holding UK Plc to 18% and stop funding the unprofitable electric-vehicle maker to focus on its own shift to battery technology.

Volvo Car plans to transfer around 9.5 billion Swedish kronor ($921 million) worth of Polestar stock to its shareholders, it saidBloomberg Terminal Friday. The move will hand more responsibility to China’s Geely, which controls both companies.