URGENT UPDATE: Polestar has just secured a significant $600 million loan facility, marking a pivotal moment for the Geely-backed electric vehicle manufacturer. The funding, confirmed today, aims to bolster Polestar’s operational capabilities and ensure its continued growth amid challenging market conditions.
Despite recent struggles, Polestar is experiencing a resurgence in vehicle sales, particularly in 2025, thanks to its innovative Swedish designs and cutting-edge Chinese technology. With this new financial backing from Geely Sweden Holdings AB, which is the parent company of Volvo, Polestar aims to extend its operational runway and mitigate the risk of potential stock delisting from NASDAQ.
The subordinated term loan facility, which is structured to offer up to $600 million, includes a crucial clause requiring lender consent for the final $300 million based on Polestar’s liquidity needs. The funds will be allocated for general corporate purposes, providing a much-needed lifeline to the company.
This announcement arrives at a critical time for Polestar, as the company has just begun delivering the highly anticipated Polestar 4 to North American customers and made enhancements to the Polestar 3, enabling its viability for vehicle-to-grid (V2G) and vehicle-to-everything (V2X) applications in Europe.
Polestar’s lineup includes four models available in 28 countries, with plans for future releases, including the Polestar 7 SUV set for 2028 and the Polestar 6 coupe/roadster. The company is positioning itself as a formidable competitor to industry leader Tesla, especially with the Polestar 3 crossover challenging the Tesla Model Y.
To further entice potential customers, Polestar is offering incentives of up to $18,000 to attract Tesla owners, showcasing their commitment to capturing market share.
As Polestar navigates this promising yet uncertain landscape, all eyes will be on the effectiveness of this funding and the company’s ability to capitalize on its recent momentum. The next steps for Polestar will be crucial as they aim to solidify their place in the competitive EV market.
Stay tuned for updates on Polestar’s journey as they harness this new funding to fuel innovation and growth.
