Polestar, the Swedish electric performance car brand, has announced that it has received further commitments for financial and liquidity support from its two major shareholders.
Volvo Cars are providing an $800 million principal amount 18-month term loan, with an equity conversion option for Volvo Cars. This loan amount is on par with the direct and indirect financial and liquidity support that Polestar’s other major shareholder, PSD Investment, is providing.
This is good news for Polestar who, as an all-electric vehicle (EV) brand, has been making big waves in the electric car space. It has seen huge success with its Polestar 2 all-electric crossover electric vehicle. It also recently launched the Polestar 3, an all-electric sports utility vehicle.
Polestar 3 is the first car on a new all-electric technology base developed by and shared with Volvo Cars. Production for initial launch markets is planned to begin in Volvo Cars’ facility in Chengdu, China. First deliveries are expected in the fourth quarter of 2023.
It also announced it will be producing the Polestar 5, a slick-looking electric performance 4-door GT, which will be launched in 2025. Plus, the Polestar 6 performance electric roadster is due for launch in 2026.
Thomas Ingenlath, Polestar CEO, said: “We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable. With sufficient funds through 2023, we remain laser-focused on business execution.
“We have around 70,000 cars on the road today and are on track to reach our goal of delivering 50,000 cars to customers in 2022. We are making strong progress on our ambitious plans to launch three more cars by 2026.”
As previously announced, Polestar expects to post its results for the period ending September 30, 2022, on Friday, November 11, 2022.