Polestar takes in almost ten billion kroner in a loan from twelve banks. In addition, Geely Sweden Holdings can put up money if necessary.
Twelve international banks are offering a three-year loan of almost ten billion kroner to Polestar.
“It gives Polestar the financing needed to take the next step in development and covers a large majority of the estimated financing needs,” the company writes in a press release.
According to Polestar CEO Thomas Ingenlath, the announcement means that there is confidence in the company’s future growth. In addition, Geely Sweden Holdings can provide financing “if necessary”, according to the press release, and Geely continues to provide operational support as well.
The loan is linked to an efficiency program to reduce costs. Polestar has already notified employees of layoffs in several rounds.
As early as next year, the plan is for Polestar to break even and deliver “over 155,000” cars. Last year, just under 55,000 cars were delivered. The company hopes that the launches of the new Polestar 3 and Polestar 4 will increase sales.
Volvo Cars will not contribute more financing to Polestar, but has extended a loan by 18 months.
