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GOTHENBURG - Swedish electric vehicle maker Polestar (NASDAQ:PSNY) announced Monday it has secured a $200 million equity investment from existing investor PSD Investment Limited, an entity controlled by Geely Holding Group founder and chairman Eric Li. The investment comes at a crucial time for the company, which InvestingPro data shows currently operates with a market capitalization of $2.17 billion and carries a substantial debt load of $5.12 billion.
According to a press release statement, Polestar will sell approximately 190.5 million newly issued Class A American Depositary Shares to PSD Investment at $1.05 per share through a private investment in public equity (PIPE). The price represents the five-day volume weighted average closing sale price prior to the agreement.
Before the transaction closes, PSD Investment plans to convert 20 million of its Class B ADS shares into Class A ADS shares to maintain its voting power below 50% in Polestar. The company intends to use the proceeds for working capital requirements and general corporate purposes.
Polestar, headquartered in Gothenburg, Sweden, currently offers three models: Polestar 2, Polestar 3, and Polestar 4. The company plans to introduce the Polestar 5 four-door GT in 2025, followed by the Polestar 6 roadster and Polestar 7 compact SUV.
The Swedish automaker currently manufactures vehicles in North America and Asia, with plans to expand production to Europe for the upcoming Polestar 7 model.
Polestar operates in 28 markets globally across North America, Europe, and Asia Pacific. The company has established sustainability targets that include halving greenhouse gas emissions per vehicle sold by 2030 and achieving climate neutrality across its value chain by 2040.
In other recent news, Polestar Automotive Holding UK Plc reported first-quarter revenue of $608 million, which was an 84.2% increase compared to the previous year but still fell short of the consensus estimate of $676.62 million. Despite this, the company’s gross margin improved significantly to 6.8% from a negative 7.7% in the previous year, and its net loss narrowed to $190 million. Retail sales increased by 76.5% year-over-year, reaching 12,304 vehicles. The company also secured over $900 million in financing facilities during the quarter. In addition, Polestar has begun selling the 2026 Polestar 4 in the United States, with production set to start in South Korea and deliveries expected in Fall 2025. The company is also undergoing significant board changes, with four members set to resign or not seek re-election at the upcoming Annual General Meeting. Cantor Fitzgerald has maintained a Neutral rating on Polestar stock, noting the company’s decision to pause its financial guidance for fiscal year 2025 due to macroeconomic challenges and tariff uncertainties.
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