Polestar said on Monday it has secured a $200 million equity investment from PSD Investment Limited, an existing shareholder controlled by Eric Li, founder and chairman of China’s Geely Holding Group.
The cash injection comes as the electric vehicle maker fights against tariffs and increased competition. Between January and March, Polestar reported a net loss of $190 million.
Volvo Cars, another major backer, said in early 2024 that it would stop funding Polestar and transfer responsibility for the brand to Geely.
The Gothenburg-headquartered company said it will use the funding for “working capital requirements and general corporate purposes.”
Polestar will issue 190,476,190 new Class A American Depositary Shares (ADS) to PSD Investment through a private investment in public equity (PIPE) at $1.05 per ADS.
To maintain its voting power below 50%, PSD Investment intends to convert 20 million Class B ADS shares into Class A ADS shares before the PIPE closes, according to the carmaker.
In mid may, the company had said that it would “continue to work closely with Geely Group on securing new equity and debt funding.”
“The Company is still at an acceptable debt level in relation to its loan covenants,” Polestar added back then.
Shares of Polestar are down about 2% so far this year but have gained 22% over the past 12 months.
Cantor Fitzgerald analyst Andres Sheppard maintained earlier this Monday a “Neutral” rating on the stock.
Separately, the EV maker said earlier this month that board members Karen Francis and David Wei will not stand for re-election, while David Richter and Daniel Li plan to step down following the company’s annual general meeting.
Polestar began this month selling the 2026 Polestar 4 in the United States, priced from $56,400, with production scheduled to begin in Busan, South Korea, and first deliveries expected in fall 2025.
Last week, the company launched orders in France, marking its 28th market globally. Polestar will sell directly online and via Volvo Cars’ retail network, giving customers access to more than 100 service points nationwide.
Stéphane Le Guevel, who heads Polestar France, said the brand aims to open up to ten sales points in the country next year, with further expansion planned for 2026.
Polestar registered 2,648 vehicles across its eleven European markets in May, an increase of 13.6% year over year. Sales rose 56.4% from April.
The United Kingdom is the brand’s largest market in Europe, representing 44.3% of its total sales in the continent last month, with 1,174 EVs — a 273.9% surge year over year.
Polestar plans to grow its European retail footprint to more than 180 locations by 2027.
