By Will Feuer
Shares of Polestar fell after the electric-vehicle company’s main backer, Volvo, said it won’t provide further funding.
American depositary receipts tied to shares of Sweden-based Polestar fell more than 8% to $1.99 after the comments from Volvo. Polestar stock was down more than 62% over the past 12 months through Wednesday’s close.
Polestar was founded in 2017 by Volvo Car and its majority shareholder, China’s Zhejiang Geely Holding Group. The companies listed Polestar on the public markets in 2022 through a merger with a special-purpose acquisition company.
Volvo said Thursday it would be concentrating its financial resources on its own needs from now on. Volvo also said it is evaluating a potential adjustment to its stake in Polestar, including a possible distribution of shares to Volvo’s shareholders, including Geely.
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