India, Feb. 23 -- Volvo Car AB will slash its stake in Polestar Automotive Holding UK Plc to 18% and stop funding the unprofitable electric-vehicle maker to focus on its on shift to battery technology.

Volvo Car plans to transfer around 9.5 billion Swedish kronor ($921 million) worth of Polestar stock to its shareholders, it said Friday. The move will hand more responsibility to China's Geely, which controls both companies.

Polestar shares have slumped due to the manufacturer's slower-than-expected ramp up and overall cooling EV demand.Volvo Car earlier this month said it's considering reducing its involvement with Polestar to relieve some of the pressure on its balance sheet.

Since listing in the US in 2022, Polestar has repeatedly ta...