Polestar, the manufacturer of electric cars, has secured £750 million to help it make more cars in the future and expand its business.
This cash boost comes at a crucial time because Volvo, a major stakeholder in Polestar, has decided to reduce how much of the company it owns.
Right now, Volvo has 48% of Polestar, but it plans to lower that to just 18%. This change means Polestar needs extra money to keep growing.
To fill this financial gap, Polestar has got loans from 12 big international banks, including well-known names like BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB. These loans, which will be paid back over three years, give Polestar the money it needs to continue growing and cover most of its financial needs for the near future.
Daniel Li, who is the CEO of Geely Holding Group and a member of Polestar’s board, confirmed that Geely, the company that owns Polestar, is fully committed to supporting Polestar’s growth. He assured that Geely will keep its shares in Polestar and will help with more financing if needed. Li also mentioned that Polestar will have access to Geely Holding’s advanced technologies and engineering expertise to help it achieve its goals of growing globally.
Jonathan Goodman, chief executive of Polestar’s sales and marketing operation in the UK, said it was great news.
“This means that Polestar are backed and Polestar are funded and Polestar are moving from a one car company to a three car company in the next months, and let us not forget the Polestar 5 where prototype production is accelerating this year, an exciting performance GT whose engineering is being done right here in the UK by the fabulous R&D UK team.
“Polestar is set for growth around the globe and we will see this accelerate in the second half of the year as our two new cars hit the road alongside the over 24,000 Polestar 2’s that we have on the UK roads today. These are exciting times at Polestar and i am delighted to be part of building this momentum.”