Polestar falls behind: Volvo does not wait

Making a success in the electric vehicle (EV) market is not easy for established companies; for a new entrant it is equally, if not more challenging. Even Tesla for all its apparent success faces innumerable challenges. But many of the EV start-ups are struggling: Arrival has all but collapsed, while Rivian’s volumes are modest, and well below expectations. Lucid may have backing from Saudi Arabia but this financial heft does not guarantee market success. And now Polestar’s major shareholder, Volvo Car (itself part owned and controlled by Geely), has decided that it cannot support Polestar anymore. It is effectively handing back control to Geely, whose chairman holds a direct stake in Polestar, while Volvo’s 48% stake will be much reduced.