The private placement of newly issued shares marks the first time external investors have backed Polestar’s products, brand, industrial capability, financial ambitions and high growth potential.
The new investments come as the global market for electric cars is growing strongly, with consumers increasingly prepared to combine e-mobility with their environmental aspirations. At the same time, the technologies behind electric cars are advancing and becoming more economical.
These factors led to Polestar attracting considerable interest from a range of external investors as part of its fund-raising activities. It can confirm today it is in ongoing discussions with global investors about possible additional fund raising.
Full financial details of the transaction are not being disclosed at this stage.
The group of investors is led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment. They have been joined by I Cube Capital, an arm of SK Inc., the South Korean global conglomerate, and a range of other investors.
The funding will help accelerate product development and output as Polestar prepares to launch new car models in the coming years.
Since launch three-and-a-half years ago, Polestar has developed its own high-quality manufacturing capability in China, built a global sales and distribution operation and successfully launched two vehicles, the Polestar 1 and Polestar 2, to extremely positive customer feedback and media reviews.
“Our new investors have recognised that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric,” said Thomas Ingenlath, CEO of Polestar said in a statement.