"Challenges Ahead for Volvo's Polestar in the EV Industry"

Geely's takeover of funding for struggling EV maker Polestar from Volvo Cars signals a shakeout in the global electric-vehicle industry, as the massive expense of developing EVs and a global EV-demand slowdown force tough decisions to cut losses. With Geely's majority stake in Volvo, the move aims to streamline investment and technology sharing across brands, including Polestar, as other EV startups also struggle with scaling up. The consolidation wave reflects a cooling capital-market enthusiasm for EVs, leading investors to reward companies that pull back on spending, while legacy automakers seek more public subsidies to increase production of electric vehicles.