Polestar secures $1 billion funding
Electric vehicle manufacturer Polestar has secured a $950 million loan from several banks to finance the next stage of its EV development.
This funding covers a significant portion of the company's estimated financing needs but doesn't entirely solve its financial difficulties. Although this new investment will assist in reducing costs, Polestar will continue to look for efficiencies, including layoffs.
Last month, Volvo Cars chose to decrease its 48% holding in Polestar and allow parent company Geely to take over financial responsibility.
The CEO of Geely, Daniel Li, who is also a board member of Polestar, announced that the Chinese automaker will continue to fully support Polestar, the iconic performance car brand, in terms of operations and finances. Geely will retain its shares in Polestar and participate in future financing activities when required. Polestar will have access to all the technologies and engineering expertise of Geely Holding to achieve its global growth targets.
