Polestar Receives USD 1.6bn Financing From Major Shareholders to Support Growth

Swedish electric performance car brand Polestar has received further commitments for financial and liquidity support from its two major shareholders. Volvo Cars is providing USD 800mn. This loan amount is on par with the direct and indirect financial and liquidity support that Polestar’s other major shareholder, PSD Investment, is providing.

This package, alongside other planned financing activities by Polestar, provides the company with sufficient funds through 2023.

Volvo Cars established Polestar as a new electric vehicle focused brand and is the largest institutional shareholder in the company.

Its holding in Polestar amounts to 48.3 per cent.

From 2022, Polestar plans to launch one new electric vehicle per year, starting with Polestar 3 – the company’s first electric performance SUV which launched in October 2022.

Polestar 4 is expected to follow in 2023, a smaller electric performance SUV coupe.

By 2023, Polestar plans that its cars will be available in an aggregate of 30 markets. 

Polestar CEO, Thomas Ingenlath, says: “We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable. With sufficient funds through 2023, we remain laser focused on business execution. We have around 70,000 cars on the road today, and are on track to reach our goal of delivering 50,000 cars to customers in 2022. We are making strong progress on our ambitious plans to launch three more cars by 2026.” 

"Polestar is our affiliate brand and an important business partner, as it plays a key role in our strategic direction to become fully electric by 2030 and shape the future of mobility,” adds Johan Ekdahl, Chief Financial Officer, Volvo Cars. “The financial support provided by us along with Polestar’s other main owner will ensure Polestar remains steadfast on further delivering on its ambitions as a performance EV car brand.”

Polestar is headquartered in Gothenburg, Sweden, and its vehicles are currently available and on the road in markets across Europe, North America, China and Asia Pacific.

Its cars are currently manufactured in China, with additional future manufacturing planned in the US.