Electric car brand Polestar Automotive Holding UK, on Wednesday, said it secured $950 million through external bank funding in the form of a three-year loan facility to strengthen its business plan as well as achieve its 2025 targets.
The financing is being provided by 12 international banks which include BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC and SPDB, said the Swedish firm.
The firm said, as of December 31, 2023, it had about $70 million in cash. Additionally, the acquired fund will be utilized to finance the next stage of its development and cover the majority of its estimated financing needs.
“Securing funding from a syndicate of global banks reflects our partners’ support for Polestar’s growth course, together with Geely’s full financial support and access to innovative technology and engineering expertise, we have reinforced our path towards cash flow break-even targeted in 2025,” said Thomas Ingenlath, Executive Chief of Polestar.
In early February, Geely Sweden Holding, China-based automotive technology group became the second-largest shareholder of Polestar while Volvo Cars modified its share structure in Polestar by distributing shares to its shareholders.
Also, Volvo retained 18% of stakes with Geely Sweden Holding being the primary recipient, and it will remain a strategic partner in areas across R&D, manufacturing, after-sales and commercial.
Polestar forecast volume growth to support 2025 volume target and a double-digit gross profit margin. Also, the company said volume and margin progression are expected to be weighted towards the second half of 2024, as the two SUVs reach full production and global distribution.
In January, the automotive company delivered about 12,800 cars in the fourth quarter including 880 Polestar 4 in China, boosting its international presence by 6% from a year ago, to around 54,600 cars.
To read more on Leadership, head to the link.
