Polestar, the Swedish electric vehicle (EV) manufacturer, has secured a $200 million equity investment from PSD Investment, an existing shareholder controlled by Li Shufu, Founder and Chairman of Geely Holding Group.
In a press release issued on June 16, Polestar stated that the funds will be allocated toward working capital needs and general corporate purposes. The automaker currently produces its high-performance EVs in North America and Asia, distributing them across 28 markets in North America, Europe, and the Asia-Pacific region, with plans to expand production into Europe.
Geely Holding Group, which holds stakes in Polestar, Volvo, and Lotus, operates across multiple industries, including automotive. However, like many EV manufacturers, Polestar has faced financial pressures due to market softening and heightened competition, as reported by Reuters.
Last year, Volvo reduced its stake in Polestar and withdrew financial backing after analysts raised concerns over resource allocation. In a February 2024 statement, Volvo emphasized its strategic shift toward investing in proprietary technologies and production capabilities.
Despite these challenges, Polestar has demonstrated resilience. According to TFN (June 20), the company is leveraging fresh capital to support the launch of three new models: a four-door GT, a roadster, and a compact SUV.
Polestar’s Q1 2024 financial results reflect positive momentum, with:
A 76% YoY increase in sales (12,304 vehicles)
Revenue growth of 84%
Gross margin improvement to 7%
A 31% reduction in net loss
The company attributes this performance to strong demand for new models, higher sales volumes, and a shift toward higher-margin vehicles. Additionally, Polestar secured or renewed over $900 million in financing facilities during the quarter.
CEO Thomas Ingenlath remarked:
“We are executing our strategy effectively—optimizing commercial operations, reducing costs, and driving growth. Our improved margins, positive gross profit, and narrowing losses reflect disciplined execution amid a dynamic market.”
With fresh funding and an expanding product lineup, Polestar is positioning itself for sustained growth in the competitive EV landscape.