Polestar Secures $1.6 Billion in Funding from Main Shareholders

Polestar has secured $1.6 billion in financing from its major shareholders Volvo Car and PSD investment, as reported by Reuters on Thursday.

The company said the funding will help the company sustain itself through volatile markets, with $800 million loans coming from both Volvo and PSD investment.

Volvo, which co-founded the Swedish electric vehicle (EV) company with Geely, owns more than 48 percent stake in Polestar and is offering the company a loan with added options to convert funds into equity down the road.

“We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable,” said Polestar CEO Thomas Ingenlath.

Polestar expects the added funding to help the automaker cover necessary funding for 2023, with the help of previously secured resources.

Last month, Polestar unveiled the Polestar 3 electric SUV offering 300 miles of range and starting at $83,900, and it’s expected to launch three more cars by 2026.

Volvo has announced plans to shift to a fully-electric lineup and all online sales by 2030, and it has remained committed to supporting Polestar amidst plans to launch its own EVs.

In June, Polestar went public on the Nasdaq under the ticker PSNY through a SPAC merger deal with Gores Guggenheim.