Electric vehicle maker Polestar receives $1.6 billion from major shareholders
- Volvo Car and PSD Investment will each provide $800 million
- Polestar says it now has sufficient funds until 2023
Nov 3 (Reuters) – Electric vehicle maker Polestar said on Thursday it had secured $1.6 billion in funding from its two largest shareholders to help it deliver on its growth plans amid volatile markets.
Volvo Car (VOLCARb.ST), which co-founded the brand with China’s Geely (0175.HK) in 2017, said it would provide an $800 million loan to the company. Its other major shareholder, PSD Investment, will provide the same amount via “direct and indirect financial and liquidity support”, Polestar said.
Volvo, which owns just over 48% of Polestar, said its loan included options for Volvo to convert some of its loans into equity as part of a potential future fundraising by Polestar.
“We welcome the continued support of our major shareholders at a time when capital markets are volatile and unpredictable,” Polestar CEO Thomas Ingenlath said in a statement.
The Sweden-based automaker said the funding, alongside previously secured resources, would provide the company with sufficient funds until 2023.
In June, Polestar listed on the Nasdaq through a merger with a special purpose acquisition company (SPAC).
Volvo, like other major automakers, has invested heavily in recent years in manufacturing its own electric vehicles and has also said it is committed to supporting Polestar.
Volvo aims to sell only fully electric cars by 2030, while Polestar aims to launch three more cars by 2026.
In February, Volvo formed a joint venture with battery maker Northvolt to build a battery factory in Gothenburg that would produce battery cells specifically for Volvo and Polestar electric cars.
However, automakers and suppliers are struggling as costly investments in an electric future coincide with runaway inflation and soaring energy prices.
Polestar’s third quarter results are expected on November 11
Reporting by Marie Mannes Editing by Stine Jacobsen and Mark Potter
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