A Polestar Roadster concept electric vehicle during the Singapore Motorshow in Singapore, on Thursday, Jan. 11, 2024. The show runs through Jan. 14. Photographer: Lionel Ng/Bloomberg via Getty Images
Lionel Ng | Bloomberg | Getty Images
Shares of Volvo Cars dipped on Friday, after the company said it would dilute its stake in electric vehicle maker Polestar by distributing 62.7% of its holdings to its shareholders.
The company’s stock traded over 5% lower at around 10:00 a.m. London time, paring some of its earlier losses.
If approved during the company’s annual general meeting of March 2024, Volvo would retain around 18% of Polestar’s shares.
The announcement comes after Volvo Cars said earlier this month that it would stop funding ailing brand Polestar and is considering adjusting its holdings in the electrical vehicle maker.
Volvo Cars did not immediately respond to CNBC’s request for comment.
This is a developing story, and it is being updated.
This story originally appeared on CNBC
