Polestar secures $950 million from a bank syndicate

Polestar Automotive Holding UK plc is in the green this morning after raising close to a billion-dollar from a bank syndicate.

The news arrives just weeks after Volvo said it has decided against funding the EV maker any further – and sold most of its stake in $PSNY to Geely.

Daniel Li – chief executive of the Chinese automaker has already confirmed that “Geely will continue to provide financial support” to Polestar Automotive.

In January, the Nasdaq-listed firm reported 54,600 deliveries for 2023 – well below 60,000 that it had targeted as Q4 deliveries declined 8.0% sequentially.

Polestar stock is down roughly 30% versus its year-to-date high at writing.

The $950 million three-year loan facility that Polestar has secured from 12 international banks will help it break-even on cash-flow basis in 2025. According to Thomas Ingenlath – its chief executive officer:

“It’s crucial to be able to concentrate on rolling out our car programmes, and it provides funds needed to complete model programme that we have with Polestar 2,3, and 4 this year, and the 5 joining in 2025.”

The electric vehicles company now expects its gross profit margins will climb into the double digits by the end of this year, as per the press release.

Wall Street currently has a consensus “hold” rating on shares of Polestar Automotive Holding UK plc.

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