Polestar said on Thursday that it has secured $1.6 billion in financing from its two main shareholders to help it execute on its growth plans amid volatile market conditions.
Volvoco-founded the brand with Geely in 2017, said it would provide an $800 million loan to the company. Its other major shareholder, PSD Investment, will provide the same amount through “direct and indirect financial and liquidity support,” Polestar said.
Volvo, which owns just over 48% of Polestar, said its loan includes options for Volvo to convert some of its loans into equity in a potential future equity raise. by Polestar.
“We welcome the continued support from our major shareholders at a time of volatile and unpredictable capital markets,” Polestar CEO Thomas Ingenlath said in a statement.
The Sweden-based carmaker says the funding, along with previously secured resources, will provide the company with sufficient capital until 2023.
In June, Polestar was listed on Nasdaq through a merger with a special purpose acquisition company (SPAC).
Volvo, like other major automakers, has invested heavily in production in recent years tram and also said it was committed to supporting Polestar.
Volvo aims to only sell all Electric Car in 2030, while Polestar aims to launch three more cars by 2026.
In February, Volvo formed a joint venture with the battery manufacturer Northvolt built a battery plant in Gothenburg to produce special battery cells for electric Volvo and Polestar vehicles.
However, automakers and suppliers are struggling as costly investments in an electric future are coupled with rampant inflation and soaring energy prices.
Polestar’s Q3 results will come into effect on November 11
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