Funding and control of Polestar is shifting.

On Thursday Volvo announced it is shifting "full operational and financial support" of its Polestar subsidiary to Chinese-owned Geely. Volvo itself is a subsidiary of Geely, which snapped up the Swedish automaker from Ford in 2010.

Volvo and Geely never fully merged, but Geely owns a 78.7% stake in Volvo, and the two automakers have collaborated on powertrains, vehicle platforms, sales, self-driving technology, and infotainment systems.

Polestar uses and benefits from all the above. The upcoming Polestar 3 electric crossover SUV shares its platform with the Volvo EX90, while the Polestar 4 rides on a Geely-based platform.

With the move, Volvo in a press release said "Polestar is entering an exciting phase with a strengthened business plan and positioned for future growth."

The startup brand has been considered a burden on Volvo's books and dragged down investor confidence.

The Swedish automaker said the two companies will continue to collaborate across the R&D, manufacturing, after-sales support, and commercial aspects of business.

Reuters reported the announcement sent Volvo's stock up more than 30% at market opening. Polestar went public on the Nasdaq as PSNY in 2022, but shares have lost 83% of their value since then.

Polestar missed its reduced delivery targets for 2023, but CarsDirect reported on Wednesday that 2024 Polestar 2 orders have already closed due to "high demand."

Geely said it will "continue to provide full operational and financial support to the independent exclusive (Polestar) brand going forward."