On February 5, Polestar CEO Thomas Ingrat said in an interview that Polestar has agreed to waive Hertz's requirement to buy its allotted number of cars in 2024. In return, Hertz promised not to advance or overly cheap*** its existing Polestar cars.
It is understood that there is a close working relationship between Polestar and Hertz. In 2022, Hertz agreed to buy up to 650,000 Polestar cars, worth up to $3 billion. From 2022 to 2023, Polestar will supply a total of 20,000 electric vehicles to Hertz. However, due to changes in the global EV market and changing demand, Hertz decided to adjust its EV procurement strategy.
Hertz reportedly said in January that it would add about one-third of its global electric vehicle fleet. Hertz said it will use a portion of the proceeds from about 20,000 electric vehicles in the U.S. to buy gasoline vehicles, "a move that will better balance** and respond to expected customer demand for electric vehicles." Hertz said at the time that the company would cut its lower-margin leasing business and reduce EV-related loss expenses.
In addition, Volvo has announced that it will stop providing funds to its subsidiary Polestar Cars and consider transferring its stake in Polestar to other shareholders. This decision may have some impact on the future of Polestar, but for now, Polestar will continue to focus on growing its electric vehicle business. On this news, Volvo's stock price soared by more than 30% at one point.