Polestar Secures $300 Million in New Equity Financing

Swedish electric vehicle manufacturer Polestar has completed a $300 million equity financing round, bringing its total equity raised in the last four months to $1 billion. The financing included participation from Crédit Agricole CIB, Vida Finance S.A., Innovator Limited and Proximastar Holdings Company Limited. Polestar announced the completion of the funding on Monday, March 23, 2026.

Details of the Financing

The new investors have entered into put option arrangements with a wholly-owned subsidiary of Geely Sweden Holdings AB. This arrangement provides investors with a potential exit path within three years with guaranteed returns, effectively backed by Geely. The terms of this financing are consistent with previous equity financing agreements announced in December 2025 and February 2026. Electrive.com reports that Polestar has not specified the allocation of the $300 million among the investors.

Geely’s Role and Financial Backing

Geely’s continued support is central to Polestar’s recent fundraising efforts. In December 2025, Polestar secured $300 million from BBVA and Natixis, alongside a $600 million loan agreement from Geely Holding. A further $400 million was raised in February, with support from Sumitomo Mitsui Banking Corporation and Standard Chartered Bank. The put option arrangements with Geely subsidiaries act as a safety net for the financial institutions, transferring the risk to the Chinese parent company.

Polestar’s Financial Position and Future Plans

Polestar CEO Michael Lohscheller stated that the financing strengthens the company’s balance sheet and improves its liquidity position. MobilityGround reports that Polestar is focused on delivering four new models in the next three years, following a record year for retail sales. Despite these positive developments, Polestar’s capital requirements remain high as the company is not yet profitable. As of the third quarter of 2025, Polestar reported a net loss of £1.56 billion, an 80% increase compared to 2024, including a £739 million write-down on the Polestar 3 in Q2.

Transaction Details

Following the closing of the transaction, expected by March 19, 2026, no single purchaser will own more than 5% of Polestar’s outstanding equity. The price per Class A ADS will remain at $19.34, consistent with the December 2025 and February 2026 financings. Purchasers will not face restrictions on selling their Class A ADSs, subject to applicable securities laws. BofA Securities is acting as Polestar’s exclusive financial advisor for this transaction.