From Fortune:

Electric vehicle disruptor, Polestar, faces falling resale values. It confirms agreement with Hertz to suspend vehicle purchase deal planned till 2027. 65,000-strong $3 billion Polestar and 100,000 Tesla purchase agreements for Hertz. Hertz offloads 20,000 Teslas, some as low as $20,000. Over 10 million EV customers troubled as industry faces product recalls and price cuts.

Polestar agreed with Hertz to modify the purchase agreement with promises not to sell Polestar vehicles too quickly or cheaply. Polestar can take back vehicles to keep a floor in price tags. The agreement will be reviewed in 2025 for resumption of sales in the U.S. Hertz did not immediately respond to Fortune’s request for comment.

Polestar’s investors express concern over Hertz’s new agreement to suspend purchase agreement. The vehicle company suffered from falling resale values. Volvo’s plans to cease funding for Polestar impact the company, but talks to fill the funding gap are in an advanced stage. Sales of Polestar 4 has started in China, Europe, and Australia while first customer deliveries of Polestar 3 is expected to start this summer.



Read more: Polestar CEO Thomas Ingenlath says Hertz EV purchase deal has been paused