Thanks to a massive, $1.6 billion injection of cash from its major stakeholders, Polestar now has runway to make it through 2023.
Volvo Cars is providing $800 million, 18-month term loan to its spinoff brand, Polestar, with an equity conversion option for Volvo Cars. The loan is equal to another set of funds, made up of direct and indirect financial and liquidity support from Polestar’s other major shareholder, PSD Investment. The combined $1.6 billion means the brand has enough runway to survive until deliveries of the recently revealed Polestar 3 SUV are well underway, and the brand is reaping the benefits of a more diversified (read: US-friendly, crossover-based) product lineup.
“We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable,” says Polestar CEO, Thomas Ingenlath. “With sufficient funds through 2023, we remain laser focused on business execution. We have around 70,000 cars on the road today, and are on track to reach our goal of delivering 50,000 cars to customers in 2022. We are making strong progress on our ambitious plans to launch three more cars by 2026.”
What do you guys think — is Polestar’s popularity set to explode when the new 3 orders start to roll in, or is the Polestar brand too niche to make it into the mainstream? Check out the 3’s official launch video, from last month, and let us know what you think in the comments.
Polestar 3 World Premier
SOURCE | IMAGES: POLESTAR.
FTC: We use income earning auto affiliate links. Learn more.