Based out of Goteborg, Sweden, Polestar is a premium electric performance car brand that had earlier this month announced its goal to create the first truly climate-neutral car by 2030. In a recent development, the company has announced that it has raised $550M (approx €457.36M) from a group of long-term financial investors.
The funding follows as the global market for electric cars is growing rapidly, with consumers not only preparing to combine e-mobility with their environmental aspirations but also, the technologies behind electric cars are advancing and becoming more economical.
Investors in this round
Polestar’s investment is being led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding, and Zibo Hitech Industrial Investment. In addition, South Korean giants SK Inc have also participated in this round, among a range of other investors.
Polestar mentions in the press release, “This private placement of newly issued shares marks the first time external investors have backed Polestar’s products, brand, industrial capability, financial ambitions, and high growth potential.”
Full financial details of the transaction are not being disclosed at this stage. Thomas Ingenlath, CEO of Polestar, says, “Our new investors have recognised that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric.”
The company also mentions that it is amid ongoing discussions with global investors about possible additional fundraising.
Funds for future growth
The raised capital will help the company to deepen the resources available to accelerate its product development and technological capability ahead of the launch of several ground-breaking cars in coming years.
Since its launch in 2017, Polestar claims to have developed its own manufacturing capability in China, built a global sales and distribution operation, as well as launched two vehicles, the Polestar 1 and Polestar 2.
Polestar is the independent Swedish premium electric performance car brand founded by Volvo Cars and Geely Holding in 2017. The company’s vehicles are available and on the road in 10 global markets across Europe and North America, and in China.
In 2021, Polestar is set to expand into eight new markets across Europe and the Asia Pacific.
The company has produces two electric performance cars. The Polestar 1 is a low-volume electric performance hybrid GT with a carbon fibre body, 609 HP, 1,000 NM, and an electric-only range of 124 km (WLTP) – the longest of any hybrid car in the world.
And, the Polestar 2 electric performance fastback is the company’s first fully electric, high-volume car. The Polestar 2 model range includes three variants with a combination of long- and standard range batteries as large as 78 kWh and dual- and single motor powertrains with as much as 300 kW / 408 HP and 660 NM.
In the future, the Polestar 3 electric performance SUV will join the portfolio, as well as the Precept – a design study vehicle released in 2020 that is slated for future production. Precept showcases the brand’s future vision in terms of sustainability, digital technology, and design.