Polestar, the performance electric vehicle (EV) brand backed by Geely, has successfully secured a loan facility of up to $600 million to stabilize its financial situation and bolster operations. This funding comes at a crucial time as the company aims to enhance its market presence following challenging recent months.
The loan agreement, established with a wholly owned subsidiary of Geely Sweden Holdings AB, involves a subordinated term loan facility that will provide Polestar with the necessary resources for general corporate purposes. The initial $300 million is readily accessible, while the remaining funds will be contingent upon Polestar’s future liquidity requirements. This strategic financial backing underscores Geely’s commitment to the brand and its vision for future growth.
Positive Momentum Despite Financial Challenges
Polestar has experienced a surge in vehicle sales, particularly in 2025, driven by its appealing Swedish design, advanced Chinese EV technology, and safety features supported by Volvo. Despite these positive indicators, the company has faced significant financial hurdles, including threats of delisting from the NASDAQ.
In a show of confidence, Geely’s investment aims to extend Polestar’s operational runway while the company capitalizes on its recent product launches. The Polestar 4 has begun deliveries to customers in North America, marking a pivotal moment for the brand. Additionally, the Polestar 3 has received upgrades, enhancing its viability as a vehicle-to-grid (V2G) option in Europe.
Polestar currently markets four models across 28 countries and has ambitious plans for future releases, including the Polestar 7 SUV, expected to debut in 2028, and the Polestar 6 coupe/roadster. The company aims to position itself competitively against leaders in the EV market, such as Tesla.
Incentives to Attract Customers
To further entice buyers, Polestar is offering incentives of up to $18,000 to attract customers considering Tesla vehicles. This strategy reflects Polestar’s determination to capture a larger share of the EV market amidst increasing competition.
The outlook for Polestar appears optimistic, driven by its innovative product lineup and the substantial financial support from Geely. As the company navigates its current challenges, the focus remains on leveraging its strengths to secure a sustainable and profitable future.
For more details on Polestar’s latest offerings and incentives, consumers can explore the full range of models available, which include the Polestar 2, Polestar 3, and the newly launched Polestar 4.
