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North Star secured a $ 950 million loanword from a dozen banks , vital funds needed to keep its EV plans moving forward following Volvo ’s conclusion to pull back its fiscal keep of the galvanising automaker .
Polestarsaid Wednesday the funds were needed to finance the next microscope stage of its developing and cover a large absolute majority of its estimated financing needs . The financing was put up by 12 international bank , include BNP Paribas , Natixis , Standard Chartered , BBVA , HSBC and SPDB , in the configuration of a three - class loanword adeptness . The company had about $ 770 million in cash at the end of 2023 , according to regulative filing .
The funding provides a critical stopgap for the publically trade Swedish EV fellowship owned by China ’s Geely Holdings . However , it does n’t solve all of its fiscal woes . Even with this new injection of capital , the troupe say Wednesday it will go on to cut costs and wait for efficiency , including layoffs . Polestar , which has prune 10 % of jobs since mid-2023 , say it plan to make another 15 % cut this year . The caller previously disclosed that 15 % caper deletion , which will affect about 450 citizenry .
The financing comes amid softening need for EVs , particularly vehicles in the sumptuosity and premium segments as consumer search better slew . At the company ’s inaugural Polestar Day in Los Angeles last November , the car maker saidnext - generation vehicles and techwould provide the spark involve to boost sales . But bringing new vehicle to market is a costly example with no guarantee of a gross revenue win .
Polestar presently produces the Polestar 2 , Polestar 3 , which recently started production in China , and the Polestar 4 . The ship’s company sound out it has successfully completed exam yield runs for the Polestar 3 at its factory in South Carolina . Prototype output of Polestar 5 , a progressive performance GT , will also accelerate in 2024 , the troupe pronounce .
The $ 950 million loan follows Volvo Cars ’ decision last month to shrink its 48 % keeping in Polestar and allow parent company Geely take over financial responsibility . Under the new social structure , Geely Sweden Holdings will become the secondly largest shareholder and Volvo Cars will retain an 18 % stake .
“ As a strategical partner and verbatim shareowner in Polestar , Geely will continue to provide full operational and financial support to the iconic operation car make extend forward , ” Daniel Li , Geely Holding Group CEO and Polestar board member said in a command . “ We will retain our shares in Polestar and designate to participate in future funding activities when required . Polestar will have full entree to engineering and engineering expertise from Geely Holding to realize its global growth targets . ”
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North Star CEO Thomas Ingenlath suppose efforts to edit out costs and improve margins are pay up off as the ship’s company work toward a 2025 goal of achieving immediate payment flow break - even , yearly volume of over 155,000 and a gross border in the gamy teens .
“ This score a newfangled phase in Polestar ’s business , ” he say in a financial statement . “ The efforts of recent years are paying off : We improve our price basis , secured funding and are ramp up our product offence . Both SUVs now focalize the brand , direct one of the fastest raise segments in the industry and position us for strong volume growth and net profit tolerance progression from the 2d one-half of 2024 . ”
