Polestar: 550 million dollars via capital increase

Polestar: 550 million dollars via capital increase

Polestar has received $550 million from a group of long-term financial investors, a private placement of newly issued shares that the company says "marks the first time outside backers have demonstrated their confidence in Volvo's electric car brand."

Polestar also says it is in ongoing talks with global investors about a possible additional capital increase. The US$550 million (equivalent to around €459 million) now raised comes primarily from Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment, along with I Cube Capital, an arm of South Korean conglomerate SK, and a number of other investors. The parties involved are not disclosing further details of the capital increase, with efforts to attract outside investors dating back as far as early 2019.

Polestar describes the new investments and associated diversification of its financing structure as prerequisites for future growth, with the funds securing the expansion of available resources for product development and the accompanying acceleration of technological innovation "with a view to launching several groundbreaking vehicles in the coming years".

Since its inception three and a half years ago, Polestar has developed its own manufacturing operations in China, established global distribution and launched two vehicles, Polestar 1 and Polestar 2. "Our new investors recognize that Polestar offers a compelling combination of proven industrial and technological expertise and outstanding growth potential as the global auto industry shifts to electric mobility," expressed Polestar CEO Thomas Ingenlath.