Polestar First-Half Sales Increase 125%, Seeks New Funding for Expansion
As Polestar’s deliveries outpace its own estimates, the automaker is considering a range of finance options to help fund expansion after more than doubling sales so far this year, according to Bloomberg.
Polestar delivered 21,200 vehicles in the first half of the year, marking a 125 percent increase year over year.
Polestar went public through a SPAC merger on Nasdaq last month, though it’s currently facing criticism over a lack of sufficient funding to cover cash needs throughout 2022.
Despite the high demand, Polestar’s shares have dropped by about 25 percent as investors are looking elsewhere from startups amid inflation, rising interest rates and an overall economic downturn.
Polestar Begins Delivering First Electric Vehicles to Hertz https://t.co/aJhecGXcha
— TeslaNorth.com (@RealTeslaNorth) June 9, 2022
As a result, Polestar is considering bank loans, bonds, equity or other equity-linked instruments to help meet cash needs for the next few years, one spokesperson for the company said.
In a statement, Polestar CEO Thomas Ingenlath said, “The company’s funding until the time-frame of 2025 is very transparent, and there is a very clear funding need over this period that is beyond the $850 million that came in from the SPAC.”
Global intake rose to over 50,000 for Polestar since 2022 began, representing an increase of 350 percent year over year.
Last month, Polestar unveiled the Polestar 5 prototype with 871 horsepower, set for production in 2024.