Geely Acquires Majority Stake in Polestar, Plans Global Expansion

Geely Holding Group has acquired a majority stake in Polestar, increasing its ownership from approximately 50% to 78%. The deal values Polestar at $4.2 billion and signals deeper integration between the Chinese automotive giant and the Swedish-heritage performance EV brand.

Deal Structure

Aspect	Details
Previous Geely stake	~50% (via Volvo Cars)
New Geely stake	78% direct ownership
Volvo Cars stake	18% (reduced from ~50%)
Public float	4%
Valuation	$4.2 billion

Why This Matters

For Polestar

1. Financial stability - Geely’s backing ensures funding for new models
2. Cost reduction - Deeper supply chain integration with Geely/Volvo
3. Technology access - Geely’s EV platforms, batteries, and software
4. Manufacturing capacity - Access to Geely’s global production network

For Geely

1. Premium brand - Western-designed, Swedish-heritage luxury EV brand
2. Market access - Established presence in Europe and other global markets
3. Technology showcase - Polestar demonstrates Geely’s engineering capabilities
4. Brand portfolio - Complements Zeekr, Volvo, Lotus, smart

Geely’s Auto Empire

Geely now controls an impressive portfolio of brands:

Brand	Segment	Geely Ownership
Volvo Cars	Premium	78%
Polestar	Performance EV	78%
Zeekr	Luxury EV	100%
Lotus	Sports/Performance	51%
smart	Urban EV	50% (JV with Mercedes)
Lynk & Co	Mainstream	100%
Geely Auto	Mass market	100%
Proton	Southeast Asia	49.9%

This makes Geely one of the world’s largest and most diversified auto groups.

Impact on Polestar’s Future

Confirmed Plans

• Polestar 3 - Large SUV, launching 2026 in North America
• Polestar 4 - Coupe SUV, expanding availability
• Polestar 5 - GT sedan based on Precept concept
• Polestar 6 - Electric roadster (limited production)

Expected Changes

Area	Expected Change
Platform	Migration to Geely SEA (Sustainable Experience Architecture)
Battery	Access to CATL/BYD cells via Geely supply agreements
Software	Integration with Geely’s ECARX infotainment
Manufacturing	More production in China for cost efficiency
Pricing	Potential reduction as costs decrease

European Market Implications

Polestar is already available in Europe:

Model	European Price	Status
Polestar 2	From €47,500	Available
Polestar 3	~€82,000 (est.)	Coming 2026
Polestar 4	~€65,000 (est.)	Coming 2026

Benefits for European Buyers

1. Continued availability - Polestar remains committed to European market
2. Pricing stability - Geely backing reduces financial uncertainty
3. Service network - Volvo dealer integration continues
4. Technology improvements - Faster updates with Geely resources

Considerations

1. Supply chain - More China-sourced components
2. Tariff exposure - Polestar currently assembles in China
3. Brand positioning - “Swedish” identity may evolve

Industry Reaction

Analysts

“Geely’s increased stake gives Polestar the resources to compete with Mercedes-EQ, BMW i, and Audi e-tron. The brand needed a committed owner.” — Deutsche Bank Auto Research

Competitors

Tesla, Mercedes-EQ, and BMW have not publicly commented, but the consolidation strengthens Polestar’s competitive position.

What This Means for Chinese EV Brands

The Polestar deal illustrates how Chinese companies are building global EV empires:

Strategy	Example
Acquisition	Geely → Polestar, Volvo
Partnership	BYD → Toyota (hybrid tech)
Direct entry	BYD, NIO → Europe
Technology licensing	Xpeng → Volkswagen

Chinese investment is reshaping the global automotive landscape.

Timeline

Milestone	Date
Deal announced	January 2026
Regulatory approval expected	Q2 2026
Integration begins	H2 2026
First Geely-platform Polestar	2028 (est.)

For more on Geely’s brands, see our Geely Brand Page.