TLDR
- Polestar secured a $450 million 12-month term facility and renewed a €480 million Green Trade Finance Facility
- The EV company has delayed its Q4 2024 results until April
- Polestar previously secured over $800 million in loans in December 2024
- The company faces challenges amid softer EV demand and strong competition
- Polestar’s U.S.-listed shares fell 2.7% in premarket trading following the announcement
Polestar, the Swedish electric vehicle manufacturer, announced on February 28, 2025, that it has secured up to $450 million in additional loan funding while delaying its fourth-quarter financial results. The company, which has been working to strengthen its financial position amid challenging market conditions, also renewed its €480 million Green Trade Finance Facility.
The new 12-month term facility comes after Polestar secured over $800 million in similar facilities in December 2024. According to a company spokesperson, the funds will be used for “general corporate use.”
The EV maker’s U.S.-listed shares dropped 2.7% in premarket trading following the announcement. This reaction reflects ongoing investor concerns about the company’s financial health.
Polestar has faced significant challenges in generating demand for its vehicles. The overall electric vehicle market has softened, and competition remains intense across the sector.
The company now plans to publish its fourth-quarter and full-year 2024 results in April 2025. This marks another delay in financial reporting for the company.
These delays follow previous issues with Polestar’s financial disclosures. The company has had to republish statements from past financial years due to errors and has delayed quarterly reports several times in a row.
These recurring delays have raised questions among investors about the firm’s accounting practices. Transparency in financial reporting remains a critical concern for Polestar stakeholders.
Backed by Chinese automotive giant Geely, Polestar has been working to restructure its operations. In January 2025, the company published results of a strategic review launched by its new CEO.
This review aimed to revamp the business and move closer to profitability. The new funding appears to be part of this broader restructuring effort.
Consistent access to capital is viewed as essential for EV companies like Polestar. The electric vehicle sector typically requires significant cash investments to scale production and operations.
When such funding becomes scarce, EV startups can face existential threats. The recent bankruptcy of EV truck maker Nikola serves as a cautionary example within the industry.
The company plans to introduce additional models
Polestar currently offers three models in its lineup: Polestar 2, Polestar 3, and Polestar 4. The company plans to introduce additional models in the coming years.
The Polestar 5 four-door GT is scheduled for introduction in 2025. Future planned models include the Polestar 6 roadster and the Polestar 7 compact SUV.
Currently manufacturing vehicles in North America and Asia, Polestar plans to expand its production footprint. The company intends to manufacture the upcoming Polestar 7 in Europe.
Polestar expects to publish its global retail sales volumes for Q1 2025 on April 10, 2025. These figures may provide further insight into the company’s operational performance.
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