Banks are investing 875 million euros in Polestar losses

Swedish-Chinese carmaker Polestar has received a three-year loan of 875 million euros from a banking consortium that includes BNP Paribas, Natixis, Standard Chartered and HSBC. This is what Polestar reports.

These are tough times for the electric sports car maker. Polestar sales have fallen worldwide in the past three quarters. In the fourth quarter of 2023, the decrease was 39 percent. In the Netherlands, the decrease in the number of registrations was 12 percent. In addition, Volvo, together with Geely’s Chinese shareholder in Polestar, announced at the beginning of this month that it will no longer provide further financing to Polestar and wants to reduce its shares from 48 percent to 18 percent in the long term. This is due to the disappointing results of Polestar, while Volvo itself is doing well.

Polestar now reports that it wants to return to profitability by the end of this year. The reorganization is underway. Polestar CEO Thomas Ingenlath says the company has improved its cost base and has now secured financing. In early February, Polestar said it needed 1.2 billion euros in financing before it could break even in 2025.

Volvo is falling behind, but for Geely the Polestar is an important brand to reach the American market. So Geely will not allow the brand to go bankrupt anytime soon, concludes American Automotive News.