PSNY - Why Polestar Stock Shot Higher Today
2024-02-29 10:49:10 ET
Investors had been losing confidence in electric vehicle (EV) maker Polestar Automotive (NASDAQ: PSNY) over the last month. That is until today. In that time Swedish automaker Volvo announced that it would stop funding the EV start-up in which it owns a nearly 50% stake. That came after Polestar said it would miss its 2023 vehicle production target.
The company delivered 54,600 vehicles last year, versus its target of about 60,000. But after an announcement of new funding and an optimistic business outlook yesterday, Polestar shares are soaring. As of 10:25 a.m. ET, Polestar stock had surged 10.1%.
Even though Volvo decided to end its funding support just as the EV maker ramps up production, the Swedish carmaker isn't abandoning it completely. Volvo's top shareholder is China-based Geely Holding . Geely would be taking over the support of Polestar's growth.
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Why Polestar Stock Shot Higher Today