Here’s What the Polestar and Volvo Breakup Means for Consumers

• Polestar is in the midst of a major corporate shakeup, as Volvo plans to shed its ownership stake in the electric-vehicle brand for its own EV independence.
• Volvo doesn't want to relinquish its whole stake in the company just yet, as it has announced a financial plan to retain around 18% of Polestar.
• As parent company Geely takes primary control over Polestar, the process of change will have few effects on consumers in the short term, though Polestar's US prospects need some attention.

It's been almost a month since the initial breakup between Polestar and Volvo went down, but now the gritty details need to be hashed out. In this case, instead of returning cherished clothing items, Volvo is divvying up its financial stake in Polestar to the tune of millions of dollars.

Specifically, executives at Volvo have proposed an amicable division of assets, shedding 62.7% of its holdings in Polestar to the company's shareholders. The ending result of this proposed transition would be a remaining 18% stake in Polestar until 2028, which Volvo says will be enough of a stake to continue exerting some influence over Polestar.

Integral to this situation is the parental presence of Geely Holding, a Chinese company with deep investments in the electric-vehicle realm. Acquiring Volvo in 2015, Geely has continued to develop its EV portfolio with brands like Lotus, Smart, and Zeeker, and now it's about to take control of Polestar, too.

That's because, in the wake of Volvo shedding its ownership stake, Polestar will be largely managed and operated by Geely. Volvo says this move will give them more independence, particularly in the EV realm where the two companies have historically shared platforms. Notably, Polestar also owes Volvo around $1 billion in convertible loan form.

Even so, Volvo is vying for independence while holding onto the idea of Polestar as its project, not its direct competitor. But how does Polestar feel about all this change?

«At the same time as this transaction allows us to welcome new shareholders, our relationship with Volvo Cars remains,» said Thomas Ingenlath, Polestar CEO. "Our customers will continue to benefit from our existing collaboration, including