Polestar Secures $950 Million in Funding After Volvo Split

Introduction

Polestar, the electric vehicle startup, has announced a major milestone just a week after Volvo sold the majority of its shares. The company has secured $950 million in external funding, setting the stage for its future growth and development.

Financing Details

The funding comes from a consortium of 12 international banks, including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB. This three-year loan facility will cover a significant portion of Polestar’s financing needs and support its upcoming projects.

Efficiency Program

Alongside the financing, Polestar has launched an efficiency program aimed at streamlining operations. This initiative will involve a 15% reduction in jobs this year as the company aims to achieve cash flow break-even by 2025 and increase its annual production volume.

CEO Statement

Polestar CEO Thomas Ingenlath expressed gratitude for the support from global banks and emphasized the company’s commitment to reaching its financial goals. He highlighted the progress made in cost optimization and product development, signaling a positive outlook for the future.

Future Plans

Polestar is gearing up for a busy year ahead, with plans to expand sales of its new models globally. Production of the Polestar 3 SUV has already begun in China, and the company is set to accelerate prototype production of the Polestar 5 in the coming months.

Strategic Partnership

Geely, a strategic partner and shareholder in Polestar, reaffirmed its commitment to supporting the brand’s growth. Geely CEO Daniel Li emphasized the company’s access to technology and engineering expertise within the Geely Holding group, positioning Polestar for success in the competitive EV market.