Staff Reports
The Volvo stock was soaring high on Thursday, not because of some fancy new product or Swedish innovation, but because they were cutting ties with something else. Yep, you heard that right. They’re ditching their electric vehicle manufacturer, Polestar Automotive, and the stock jumped up a whopping 26 percent! That’s what happens when you cut the dead weight, folks.
Major Auto Company Shuts Down Funding to EV Subsidiary, Immediately Sees Stock Price Boom https://t.co/UFCfIb5gPJ #BreakingNews #Breaking #News pic.twitter.com/DlM56LCZ81
— Patriot Pointman ?? (@PatriotPointman) February 1, 2024
And it looks like Volvo isn’t the only one taking a step back from the electric vehicle craze. Renault canned the IPO for its electric-car unit Ampere, and Ford had to slow down production for its electric F-150 Lightning. Even Hertz, the rental car company, is ditching a third of their electric fleet for good ol’ gas-engine vehicles. It’s like they say, “out with the new, in with the old!”
But don’t worry, this isn’t just a fluke. Tesla warned investors of slower growth in 2024, and car manufacturers are getting more and more antsy about the whole electric vehicle scene. It’s like they finally realized that not everyone wants to drive a glorified golf cart.
Polestar, the electric vehicle wonder child, hasn’t exactly been living the dream since going public. Their shares dropped a jaw-dropping 84 percent in 2023, and the future wasn’t looking too bright. But hold on to your hats, because Polestar’s CEO is feeling optimistic about their “exclusive, performance cars.” Maybe they should focus on making cars people actually want to buy.
And that’s not all, folks. Volvo might be getting rid of their shares in Polestar and giving them to their shareholders, which means a brand new big shot at the electric vehicle scene. I mean, who wouldn’t want more electric cars that no one wants?
This change of heart from Volvo is all part of their new focus on their own electric vehicle development. Say goodbye to throwing money at something that doesn’t work, and hello to the good old American tradition of doing it yourself. CEO Jim Rowan said it best, “Now, Polestar … they’ve got a very exciting future ahead of them,” but looks like Volvo won’t be holding their hand through it.
