Polestar said on Thursday it had secured $1.6 billion in financing from its two main shareholders to help it deliver its growth plans amid volatile markets.<\/p>\n
Volvo, which co-founded the brand with China’s Geely in 2017, said it would provide an $800 million loan to the firm. Its other major shareholder, PSD Investment, will provide the same amount through “direct and indirect financial and liquidity support,” Polestar said.<\/p>\n
Volvo, which owns just over 48% in Polestar, said its loan included options for Volvo to convert some of its loans to equity in a potential future equity raising by Polestar.<\/p>\n
“We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable,” Polestar CEO Thomas Ingenlath said in a statement.<\/p>\n
The Sweden-based carmaker said the funding, alongside previously secured resources, would provide the company with sufficient funds through 2023.<\/p>\n
In June, Polestar was listed on the Nasdaq through a merger with a special purpose acquisition company (SPAC).<\/p>\n
Volvo, like other major carmakers, has in recent years invested heavily in making its own electric vehicles<\/a> and has also said it was committed to supporting Polestar.<\/p>\n Volvo aims to sell only fully electric cars<\/a> by 2030, while Polestar has a goal to launch three more cars by 2026.<\/p>\n In February, Volvo formed a joint venture with battery<\/a> manufacturer Northvolt to build a battery plant in Gothenburg which would produce battery cells specifically for electric Volvo and Polestar cars.<\/p>\n However, carmakers and suppliers are struggling as costly investments in an electric future coincide with rampant inflation and soaring energy prices.<\/p>\n Polestar’s third quarter results are due on Nov. 11<\/p>\n Related Video:<\/strong><\/p>\n