Sweden’s very own Volvo Car Group has recently bought fresh shares in the electric car maker Polestar taking over its holdings to 49.5% in the EV maker which is powered by Volvo’s parent company, the Chinese automaker, Geely.
This investment comes subsequently after Polestar raised $550 million in its very first external funding around April.
Volvo stated, “The move reflects Volvo Cars’ strong conviction in Polestar’s positioning and exciting potential in the high growth segment for premium electric vehicles,”
Tesla shares are reduced to 9% in the current year which raises concerns of augmented competition from the traditional automakers in the production of EVs.
These purchases can lead Volvo’s stake to rebound to the level afore, before the April funding scenario when Polestar acknowledged a cash infusion from Chinese investors Chongqing Chengxing Equity Investment Fund Partnership and Zibo.
Polestar assembles hybrid performance cars in the western Chinese city of Chengdu and sedan business models at the Taizhou plant in the east. It also has a recent model in progress called Precept which is a much larger, more environment-friendly sedan that was displayed at last year’s China auto show.
Volvo has no more plans to multiply its stake in Polestar as it already owns 49.5%.