Polestar, the performance electric vehicle (EV) brand backed by Geely, has secured a substantial $600 million loan facility aimed at bolstering its operational capabilities. This financial boost comes at a crucial time, as the company has faced challenges in recent months, including concerns over its stock potentially being delisted from the NASDAQ.
The loan agreement was established with a wholly owned subsidiary of Geely Sweden Holdings AB, which is the parent company of Volvo. The funding includes a subordinated term loan facility of up to $600 million, with an important stipulation that the final $300 million is contingent on Polestar’s future liquidity needs. The funds are designated for general corporate purposes, helping the brand navigate its financial landscape.
Polestar’s sales have shown signs of recovery, particularly in 2025, driven by the appeal of its Swedish design, advanced Chinese technology, and safety features developed in collaboration with Volvo. Despite these strengths, the company has had to confront a turbulent financial picture, underscored by the looming threat of stock delisting.
Recent Developments and Future Prospects
This recent funding marks a significant week for Polestar, coinciding with the launch of the Polestar 4, which has begun deliveries to its first North American customers. Additionally, enhancements to the Polestar 3 have positioned it as a competitive vehicle-to-grid (V2G) offering in Europe, further solidifying the brand’s portfolio.
With four models currently available in 28 countries, Polestar is also planning to expand its lineup. Upcoming models include the Polestar 7 SUV, scheduled for introduction in 2028, and the Polestar 6 coupe/roadster. The introduction of the new Polestar 3 crossover has positioned it as a formidable competitor to the industry-leading Tesla Model Y.
To attract potential buyers from Tesla, Polestar is offering incentives of up to $18,000, showcasing its commitment to growing its market share in the increasingly competitive EV sector. The company’s strategic initiatives and product offerings signal a more promising outlook for the future.
The combination of new funding and ongoing product development suggests that Polestar is taking significant steps to establish itself as a key player in the electric vehicle market. As the landscape continues to evolve, Polestar’s ability to innovate and adapt will be critical to its success in the coming years.
