The Swedish electric performance car manufacturer Polestar has received a total of USD 1.6bn dollars for financial and liquidity support from its two major shareholders from its two main shareholders.
Volvo Cars is providing USD 800mn principal amount 18-month term loan, with an equity conversion option for Volvo Cars. 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. PSD Investment is owned by Eric Li, chairman of both Volvo Cars and parent company Geely.
This package, alongside other planned financing activities by Polestar, provides the company with sufficient funds through 2023 – including the production start-up of the Polestar 3.
“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,” says Polestar CEO, Thomas Ingenlath.
Volvo Cars established Polestar as a new electric vehicle focused brand and is the largest institutional shareholder in the company. Volvo Cars holding in Polestar amounts to 48.3 per cent.
“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,” said Johan Ekdahl, Chief Financial Officer, Volvo Cars. He added, “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.”