Polestar, the performance electric vehicle (EV) brand backed by Geely, has successfully secured a loan facility worth $600 million to enhance its operations and support ongoing vehicle production. This financial boost comes at a crucial time for the company, which has faced challenges in recent months, including concerns regarding the potential delisting of its stock from the NASDAQ.
The loan agreement, established with a wholly owned subsidiary of Geely Sweden Holdings AB, allows Polestar to access up to $600 million in a subordinated term loan facility. Of this amount, the final $300 million will require lender consent based on Polestar’s future liquidity needs. These funds are earmarked for general corporate purposes and are intended to extend the company’s operational runway as it navigates the evolving automotive market.
Positive Developments Amid Challenges
Despite its recent financial struggles, Polestar has shown promising signs of recovery. Vehicle sales in 2025 have begun to pick up, bolstered by the brand’s appeal, which combines Swedish design sensibilities with advanced Chinese EV technology and safety specifications developed in partnership with Volvo. The introduction of the Polestar 4 has marked a significant milestone, as deliveries to North American customers have recently commenced, while enhancements to the Polestar 3 have improved its viability as a vehicle-to-grid (V2G) and vehicle-to-everything (V2X) option in Europe.
Polestar currently offers four models across 28 countries and is planning to expand its lineup further. Upcoming models include the Polestar 7 SUV, slated for release in 2028, and the Polestar 6 coupe/roadster. This diverse range positions Polestar as a formidable competitor in the EV market, particularly against established leaders like Tesla.
Incentives to Attract Buyers
To enhance its competitive edge, Polestar is promoting incentives of up to $18,000 to entice existing Tesla customers. This strategic move aims to not only increase sales but also to solidify Polestar’s presence in the expanding electric vehicle market. The new initiatives come at a time when consumer demand for EVs is on the rise, reflecting a broader shift towards sustainable transportation solutions.
As Polestar continues to innovate and expand its offerings, the recent funding from Geely underscores the parent company’s commitment to supporting the brand’s growth. With its strong foundation and ambitious future plans, Polestar is poised to navigate the challenges of the automotive industry and capitalize on the increasing demand for electric vehicles.
The brand’s trajectory suggests a vibrant future, driven by technological advancements and a commitment to sustainability. As developments unfold, stakeholders and consumers alike will be watching closely to see how Polestar leverages this new funding to enhance its market position.
