Polestar announced it has agreed to a $400 million equity financing backed by two financial institutions, with Sumitomo Mitsui Banking and Standard Chartered Bank (Hong Kong) Limited each investing $200 million. The transaction is structured with put option arrangements that provide investors with a potential exit in three years, via a wholly owned subsidiary of Geely Sweden Holdings AB, with certain returns as part of the overall financing package.
The company said the terms mirror equity financing arrangements it announced in December 2025, including a purchase price of $19.34 per Class A ADS. After closing, Polestar said neither investor is expected to own more than 10% of its outstanding equity. Investors will not be subject to restrictions on selling the ADSs they receive, subject to applicable securities laws.
Polestar said the transactions are expected to close by February 5, 2026, and that no regulatory approvals are required. BofA Securities is acting as the company’s exclusive financial advisor on the deal.
The Swedish EV maker, headquartered in Gothenburg, said it operates in 28 markets across North America, Europe, and Asia Pacific, and currently offers four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. It also reiterated planned models, including the Polestar 7, a compact SUV targeted for 2028, and the Polestar 6 roadster, and outlined an effort to further diversify manufacturing, with Polestar 7 production planned in Europe.
Polestar also reiterated its sustainability roadmap, including a goal to halve greenhouse gas emissions per vehicle sold by 2030 and to become climate-neutral across its value chain by 2040, while noting that forward-looking statements in the release include expectations around the timing and completion of the equity investment.
KEY QUOTE:
“Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet. With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
Michael Lohscheller, CEO, Polestar
