The Swedish brand just caught a $1.6 billion bag.
Polestar is in a pretty good place after the introduction of the Polestar 3. The model debuted almost a month ago, and the brand continues to build momentum, carving a place out amongst its competitors. Now, Polestar has secured the money it needs to do that for another year.
Reuters reports that the brand has just secured around $1.6 billion in financing from its two main shareholders- Volvo, which is also owned by Chinese company Geely, and PSD Investment. "We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable," Polestar CEO Thomas Ingenlath said in a statement.
Each will provide roughly $800 million in funds to the climate-focused autos brand. The other, PSD Investments, now counts Polestar as one of its larger investments. PSD will provide the sum via "direct and indirect financial and liquidity support," per Polestar.
Volvo has said its $800M loan to Polestar will include options for the Swedish brand to change some of its loans to equity in a potential future equity raising by Polestar. However, Polestar has not said anything about upcoming equity raising. For now, Polestar seems happy to just have the cash.
Clearly, the CEO has a cautious outlook on the global market. Ingenlath's above statements clearly show that the brand is aware it could be in for some tough times if the markets continue to trend downwards. Still, the automaker says this most recent influx of cash does guarantee one thing: it now has enough money to provide the company with funding through 2023.
By the end of 2023, deliveries of the Polestar 3 will be well underway, and the brand should be reaping the benefits of a more diversified lineup. Fantastic though the Polestar 2 may be, the brand needed an SUV to cast a wider net. With any luck, that net will bring some more cash in for 2024.