Struggling electric vehicle maker Polestar announced on Wednesday that it has secured a new term loan facility of up to $600 million from its parent company, Geely Holding Group.
The premium EV brand said it has entered into “a credit agreement with a wholly owned subsidiary of Geely Sweden Holdings AB,” which will act as the lender.
Access to $300 million of the facility is unconditional, while the remaining $300 million will be available only with lender approval, based on “Polestar’s future liquidity needs.”
Upon reporting its third-quarter financial earnings, the brand stated that external headwinds continue to impact profitability.
By then, CEO Michael Lohscheller revealed that the company was working towards “securing new equity and debt funding,” supported by Geely.
Financial Results
Last quarter, Polestar reported a net loss of $365 million, wider than the loss recorded in the same period a year earlier.
That figure represents a sharp improvement from the second quarter, when the company posted a $1 billion loss.
However, for the first nine months of 2025, total losses reached nearly $1.6 billion — almost double the $860 million loss reported over the same period in 2024.
On the revenue side, Polestar generated $748 million in the third quarter, a 36% increase year over year.
Still, it fell $102 million short of the consensus estimate of $850 million, despite a year-over-year growth in vehicle deliveries of 13%.
Gross margin deteriorated to negative 6.1%, a decline of 4.9 percentage points from negative 1.2% a year earlier.
The EV maker attributed the deterioration to pricing pressure, higher costs linked to tariffs, adverse product mix, inventory adjustments, and residual value guarantee costs in North America, partially offset by carbon credit sales.
Automotive Sales
Polestar delivered an estimated 14,192 vehicles in the third quarter across its global markets.
While sales have largely remained stable in Europe — which accounts for about 75% of the brand’s market, according to Lohscheller — Polestar has faced more challenging conditions in both North America and China.
In China, where its production is mainly based, layoffs took place in the first quarter of the year, as the company failed to be competitive in the market.
Polestar closed its last remaining showroom in China in October. Customers can still purchase vehicles online.
In the United States, tariffs delayed deliveries of the Polestar 4 and forced the company to halt sales of the Polestar 2 earlier this year.
The Polestar 3 is the only model manufactured in the continent, at Volvo’s plant in South Carolina.
Earlier this week, deliveries of the new Polestar 4 — now also produced in South Korea — began in both the United States and Canada.
Reverse Stock Split
After receiving a potential delisting warning by Nasdaq, issued when shares trade below $1.00, Polestar announced it was moving forward with a reverse 1-for-30 stock split.
In the past twelve months, Polestar‘s stock has lost over 50% of its value. The stock has traded below $30 — previously $1.00 — since September 8.
Polestar‘s US-listed shares reached a new all-time low last Thursday, extending losses from a day earlier, when the split took effect.
Shares traded at $11.75, equivalent to $0.39 before the split. They later closed at $12.01, down nearly 15%, extending losses from a 22% drop on Wednesday.
