Polestar said Monday it has secured a $400 million equity investment from two financial institutions, providing another lifeline for the struggling EV maker as it works to shore up its finances.
The investment comes from Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and the Hong Kong subsidiary of the British bank Standard Chartered Bank (Hong Kong) Limited, with $200 million each.
Polestar shares rose 3% in early Monday trading following the announcement.
However, the stock erased those gains and was trading 1% lower at $14.98 as of publication time.
“Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet,” CEO Michael Lohscheller said.
“With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar,” he added.
The brand originated as a racing car manufacturer in 1996 before partnering with Volvo on performance vehicle development.
Volvo acquired Polestar in 2015, and the brand became an independent performance EV brand in 2017 following Geely‘s 2010 acquisition of Volvo.
Put Option Structure
Polestar said that both financial institutions entered into put option arrangements with a wholly-owned subsidiary of Geely Sweden Holdings AB, which provides them with an exit path in three years with certain returns if needed.
“The terms are similar to the equity financing arrangements announced by the Company in December 2025,” Polestar said.
Following the closing of the transaction, neither financial institution will own more than 10% of Polestar‘s outstanding equity.
The transactions are expected to close by February 5 as no regulatory approvals are required, according to the company.
December Funding
The latest investment follows two funding arrangements announced in December.
Geely Holding Group, Polestar‘s largest backer, agreed to provide a $600 million subordinated term loan.
Separately, Banco Bilbao Vizcaya Argentaria SA and Natixis SA each contributed $150 million in equity investments under similar terms.
Financial Position
The EV maker’s cash balance stood at $995 million at the end of the third quarter.
The company posted a net loss of $1.56 billion for the nine months ended September 30, 2025, compared with a restated loss of $867 million in the same period a year earlier — an 80% increase.
Gross margin deteriorated sharply to negative 34.5% from negative 2.1% a year earlier in the same period.
Adjusted EBITDA loss widened 8% to $561 million for the nine months, compared with $610 million a year earlier.
Leadership Changes
The company promoted its Global Sales Director Scott Dicken to Chief Commercial Officer last week, the executive announced on LinkedIn.
Dicken, a former Jaguar Land Rover sales director who joined Polestar in March 2021, succeeds Kristian Elvefors, who leaves after two years.
