Polestar secures a loan of 950 million USD
The Swedish electric car manufacturer Polestar has secured external financing amounting to $950 million USD. The financing is provided by twelve banks – including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB – in the form of a three-year credit line. The funds are intended to ensure financing for the next development phase and cover a large portion of the estimated financing needs. As of December 31, 2023, Polestar's cash balance amounted to approximately $770 million USD.
Polestar CEO Thomas Ingenlath: "Together with the comprehensive financial support from Geely and access to innovative technology and technical expertise, we have strengthened our path to cash flow break-even for 2025."
To consolidate its financial sector, the Swedish electric car brand has also launched a savings program. Among other measures, 10% of jobs have already been cut since mid-2023, with another 15% set to follow this year. With this, Polestar aims to come closer to its 2025 goals: achieving cash flow break-even, an annual volume of over 155,000 vehicles, and a gross margin in the high teens. Additionally, the new shareholder structure with Geely Sweden Holdings as the new second-largest shareholder, having acquired stakes from Volvo Cars, which still remains involved with an 18% share (VISION mobility reported).
Expanded Model Range
At the same time, the company has expanded its model range with two SUVs. The sale of the Polestar 4 has begun worldwide, the Polestar 3 has now started production in China and has also successfully completed test production in South Carolina (USA). Prototype production of the high-performance GT Polestar 5 will also start in 2024.
“This marks a new phase in Polestar's business. We have improved our cost base, secured financing, and are ramping up our product offensive. Both SUVs target one of the fastest-growing segments in the industry and position us for strong volume growth and an increase in profit margin from the second half of 2024.” (Ingenlath)
Outlook
By the end of 2024, Polestar expects significant volume growth and a double-digit gross profit margin. From the second half of 2024, full production of the two new SUVs is expected to commence and reach global distribution.
About Polestar
Polestar is headquartered in Gothenburg and sells its vehicles online in 27 markets across North America, Europe, and the Asia-Pacific region. In Germany, the office is located in Cologne. Polestar plans to build a product portfolio of five electric cars by 2026.
Translated automatically from German.Elektromobilität , Newsletter Elektromobilität , IAA Mobility , SUVs und Geländewagen , Hybrid , Antriebsarten, Kraftstoffe und Emissionen , Oberklasse- und Sportwagen , Carsharing , Autonomes Fahren (Straßenverkehr) , Ladeinfrastruktur , Verkehrspolitik , Formel E , Brennstoffzellen , Fahrzeug-Vernetzung und -Kommunikation , Fahrzeuge & Fuhrpark , Automotive-Messen & Veranstaltungen , Pkw, Kompakt- und Mittelklasse , Minis und Kleinwagen , E-Auto-Datenbank, E-Mobilität-/Automotive-Newsletter, E-Auto-Tests