Polestar Automotive Secures $950 Million in Funding Amid Business Plan Progress; Shares Close up 22%
Polestar Automotive Holding UK PLC (Nasdaq: PSNY) has announced securing $950 million through a three-year loan facility provided by a syndicate of 12 international banks, including notable names like BNP Paribas and HSBC.
The loan aims to cover a significant portion of Polestar’s upcoming financial needs, complementing the $770 million cash balance reported as of December 31, 2023.
Geely Sweden Holdings, affirming its strategic partnership, plans to continue its financial and operational support, including future financing activities.
Polestar intends to enhance its product mix with the global rollout of two new SUVs, expected to boost sales volume and profit margins in the latter half of the year.
The company has initiated an efficiency program, which has already led to a 10% job reduction since mid-2023, with an additional 15% cut planned for this year.
The funding aligns with Polestar’s strengthened business strategy, aiming for cash flow break-even by 2025, a target of over 155,000 annual vehicle sales, and improved gross margins.
Upcoming Events:
Polestar has postponed the release of its full-year 2023 results to comply with the Sarbanes-Oxley Act requirements. A new date will be announced.
A webcast to discuss business updates and outlook is scheduled for February 29, 2024.
About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand determined to improve society by using design and technology to accelerate the shift to sustainable mobility. Headquartered in Gothenburg, Sweden, its cars are available online in 27 markets globally across North America, Europe and Asia Pacific.
Polestar plans to have a line-up of five performance EVs by 2026. Polestar 2, the electric performance fastback, launched in 2019. Polestar 3, the SUV for the electric age, launched in late 2022. Polestar 4, the SUV coupé transformed, is launching in phases through 2023 and into 2024. Polestar 5, an electric four-door GT and Polestar 6, an electric roadster, are coming soon.
The Polestar 0 project supports the company’s ambitious goal of creating a truly climate-neutral production car by 2030. The research initiative also aims to create a sense of urgency to act on the climate crisis, by challenging employees, suppliers and the wider automotive industry, to drive towards zero.
