Polestar Automotive Holding UK PLC, a Swedish electric performance car brand supported by Geely, announced on Wednesday that it has obtained $950 million in outside funding.
Twelve top global banks, including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB, are providing the funding, according to a statement from Polestar. The loan facility has a three-year term.
It meets a significant portion of Polestar’s projected financing needs and gives the company the money it needs to finance the next phase of its growth.
As of December 31, 2023, the company had about $770 million in cash on its balance sheet.
The company reported that it is hitting its 2025 goals and making significant progress toward its updated business plan.
“Securing funding from a syndicate of global banks reflects our partners’ support for Polestar’s growth course. Together with Geely’s full financial support and access to innovative technology and engineering expertise, we have reinforced our path towards cash flow break-even targeted in 2025,” said Thomas Ingenlath, Polestar Chief Executive Officer.
Chief Executive Officer of Geely Holding Group and member of the Polestar board Daniel Li stated that Geely will continue to support the legendary performance car brand fully both financially and operationally as a direct shareholder and strategic partner.
“We will retain our shares in Polestar and intend to participate in future financing activities when required. Polestar will have full access to technologies and engineering expertise from Geely Holding to realize its global growth targets,” he added.
As per the statement, Polestar will provide a comprehensive efficiency program in addition to the financing that has been agreed upon.
Ten percent of jobs have been eliminated since the middle of 2023, and the other fifteen percent will be eliminated this year, among other measures.
As a result, Polestar has significantly advanced toward its 2025 goals, which include reaching cash flow break-even, exceeding 155,000 in annual volume, and having a gross margin in the high teens.
Polestar was able to add two high-margin sports utility vehicles (SUVs) to its lineup at the same time.
Polestar 3 has now commenced production in China and has completed successful test production runs in South Carolina, USA, while Polestar 4 sales are rapidly expanding globally.
