Polestar gets $1 billion in external funding

Swedish electric car company Polestar today announced that it has secured nearly $1 billion in external funding to grow its future products.

This funding will be a three-year loan facility from 12 international banks including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB.

This $955 million funding will be used in the development of new products and the majority of its financing requirements. Polestar says that the balance sheet as of 31 December 2023 was approximately $770 million.

The carmaker has been taking extra measures to progress in its 2025 targets including:

• Cash flow break-even
• Annual volume of over 155,000
• Gross margin in the high teens

The company also notes that the latest Polestar 4 sales are increasing around the globe. Polestar 3 is now in production in China and its test production is completed in South California.

Meanwhile, the prototype production of Polestar 5 will keep making further progress throughout this year.

With a recent shareholder restructure, Geely Sweden Holdings became the second largest shareholder and Volvo Cars could keep an 18 percent stake.

Polestar says it is expecting volume growth for this year will contribute to next year and achieve a double-digit gross profit margin. the carmaker is scheduled to release a full-year 2023 results and conference call tomorrow February 29, 2024, at 08:00 ET.

(source – Polestar)