Polestar Secures Crucial Funding Amidst Market Challenges
Swedish electric vehicle manufacturer Polestar has announced a significant equity investment of $US400 million (approximately $A570 million), a move aimed at reinforcing its financial standing. The funding comes as the company navigates a challenging period marked by a global downturn in electric vehicle (EV) demand.
New Investment Details Emerge
The recent capital infusion includes $US200 million from Feathertop Funding Limited, a special purpose vehicle connected to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited. Neither of these entities is expected to hold more than 10 percent of Polestar’s total equity following the completion of these transactions.
Building on Previous Financial Support
This latest funding round follows substantial financial backing secured in December. Polestar received a $US300 million equity investment from Spain’s BBVA and France’s Natixis. Additionally, a loan agreement valued at up to $US600 million with Geely Holding was finalized in the same month.
CEO Expresses Confidence in Future Strategy
Polestar CEO Michael Lohscheller stated, “Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet.” He added, “With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
Company’s Market Position and Future Plans
Polestar operates within the premium segment of the EV market. The company’s current offerings include the Polestar 2, with the higher-priced Polestar 3 and Polestar 4 models already launched. The upcoming Polestar 5 is also part of the company’s product expansion strategy.
