Gothenburg-based Polestar, a premium electric vehicle firm backed by Volvo Car Group and Hollywood actor Leonardo DiCaprio, announced on Thursday that it has received $1.6B (approximately €1.6B) in financing support from two of its major shareholders.
As a part of the deal, Volvo Cars is providing $800M in a loan term for 18 months with an equity conversion option for Volvo Cars.
The company says that the loan amount is on par with the direct and indirect financial and liquidity support that PSD Investment, Polestar’s other major shareholder, is providing.
“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. In addition, we are making strong progress on our ambitious plans to launch three more cars by 2026,” says Polestar CEO Thomas Ingenlath.
Polestar: What you need to know
Founded in 2017 by Volvo Cars and Zhejiang Geely Holding, Polestar is a global pure-play, premium electric performance vehicle manufacturer. To date, Polestar has produced two electric performance cars – Polestar 1 and Polestar 2.
The Polestar 1 is a low-volume electric performance hybrid GT with a carbon fiber body producing 609 HP and 1,000Nm of torque. It has an electric-only range of 124 km (WLTP).
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 of torque.
From 2022, the Swedish company plans to launch one new electric vehicle per year, starting with Polestar 3 – the company’s first electric performance SUV launched in October 2022.
Polestar 4 is expected to follow in 2023, a smaller electric performance SUV coupe.
In 2024, the Polestar 5 electric performance 4-door GT is planned to be launched as the production evolution of Polestar Precept – a concept car released in 2020.
The company aims to produce a truly climate-neutral car by 2030.
Earlier this year, Polestar revealed its second concept car. This electric performance roadster builds on the design, technology, and sustainability ambitions of Precept, says the company.
The company also confirmed in August 2022 that a version of the concept will be produced as the Polestar 6 electric performance roadster, with launch expected in 2026.
Polestar’s electric performance cars – Polestar 1 and Polestar 2 – are currently on roads across Europe, North America, and Asia.
By 2023, the company plans that its cars will be available in 30 markets. Polestar cars are currently manufactured in China, with additional future manufacturing planned in the USA.
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