The takeover deal has already been cleared by the USA committee on foreign investment (CIFIUS).
The parent company of Volvo, Geely Holding Group Co., was rumoured to be looking at the 11-year old flying auto start-up back in July, today though comes confirmation that the Chinese group had made the purchase.
In anticipation of this transaction, the Company's team of engineers has tripled over the past three months with Geely Holding's approval and with Geely being fully committed to investing further in the company and creating additional jobs after completion of the acquisition.
Apart from the 2019 model, the company is also working on one that can take off and land vertically that it hopes it will be able to launch by 2023.
Terrafugia is a USA company based in Woburn, Massachusetts, founded in 2006 by MIT graduates.
The price tag of the acquisition has not been disclosed, but Geely will acquire all outstanding shares and appoint three board members including Nathan Yu Ning, its vice president of global business. "Now as part of Geely Holding Group, I am confident that we can reach that vision and subsequent commercial success by utilizing the groups' shared global synergy".
Not so for Terrafugia, whose flying cars look like cars and are also entirely roadworthy, converting in an instant as large wings fold out to allow passengers to soar through the sky.
Following the deal, which Geely says has been approved by all relevant regulators, Terrafugia will stay headquartered in the U.S. The acquisition pits Geely Founder Li Shufu against billionaires including Google Co-Founder Larry Page in the race to get flying-car startups off the ground.
Terrafugia founder Carl Dietrich will be transitioned to the role of chief technology officer. It closed the day at HK$28.2, or 6.4% higher than Monday.
While there are plenty of sky taxis and autonomous flying machines that are in development around the world at the moment, it has to be said that these vehicles rarely look like actual cars - instead, the most common design seems to be based off the idea of a giant toy helicopter.