Polestar secures $400 million equity financing from banking partners

Polestar (NASDAQ: PSNY) announced it received $400 million in equity financing from two financial institutions, according to a company statement.

The Swedish electric vehicle manufacturer said Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited each invested $200 million.

The financial institutions entered into put option arrangements with a wholly-owned subsidiary of Geely Sweden Holdings AB, providing an exit path in three years with certain returns. The arrangement mirrors equity financing terms the company announced in December.

Following the transaction's completion, neither financial institution will own more than 10% of Polestar's outstanding equity. The Class A ADS purchase price is set at $19.34, matching December's equity financing price.

"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," said Michael Lohscheller, Polestar CEO.

The financial institutions face no restrictions on selling their Class A ADSs, subject to applicable securities laws. The transactions are expected to close by February 5, 2026, with no regulatory approvals required.

BofA Securities serves as Polestar's exclusive financial advisor for the transaction.

The Gothenburg-based company operates in 28 markets across North America, Europe, and Asia Pacific, with four current models in its lineup.

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