Polestar raises additional $400 million
Feathertop Funding Limited, a special-purpose vehicle of Sumitomo Mitsui Banking Corporation, is the source of the funds, as Polestar explains. Alongside their equity investment in Polestar, Feathertop and Standard Chartered Bank of Hong Kong have each entered into a put option agreement with a wholly owned subsidiary of Geely Sweden Holdings AB. “Concurrent with the purchase, these financial institutions have each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings AB, which provides the financial institutions with an exit path, if needed, in three years with certain returns, as part of this equity financing arrangement,” states the Swedish-Chinese car manufacturer.
“Following the closing of the transaction with Sumitomo Mitsui Banking Corporation and Standard Chartered Bank, neither financial institution will own more than 10% of Polestar’s outstanding equity. The price per Class A ADS to be purchased at the closing will be USD 19.34, which is the same price as in the equity financing in December,” the announcement continues. “The financial institutions will not have any restrictions on the sale of the Class A ADSs they receive, subject to any applicable securities laws. The transactions are expected to close by February 5, 2026 as no regulatory approvals are required.”
The terms of this agreement are similar to the equity financing deals the company announced in December 2025. At the time, the brand secured a $600 million loan from its majority shareholder, Geely. Half of this amount was made available to Polestar immediately, while the second tranche depends on further developments.
Polestar’s capital requirements remain high, as the company is not yet profitable. The financial results for the fourth quarter and the full year 2025 have not yet been released. However, up to and including the third quarter of 2025, Polestar had already recorded a net loss of $1.56 billion in its accounts—80 percent more than in 2024. However, this figure includes a one-off effect, as the company had to write off $739 million on the Polestar 3 in Q2.
“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,” says Polestar CEO Michael Lohscheller. “With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
0 Comments