Electric vehicle brand Polestar has announced it has received US$1.6 billion (AUD$2.49bn) in financing support from major shareholders.
That includes US$800 million (A$1.24bn) from Volvo, another brand in the Geely empire. Volvo’s investment comes in the form of an 18-month term loan, with an equity conversion option.
The other major shareholder, PSD Investment, has provided an equal amount in both direct and indirect financial and liquidity support.
“We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable,” said Polestar CEO Thomas Ingenlath.
“With sufficient funds through 2023, we remain laser focused on business execution. We have around 70,000 cars on the road today, and are on track to reach our goal of delivering 50,000 cars to customers in 2022.
“We are making strong progress on our ambitious plans to launch three more cars by 2026.”
Polestar will announce its third quarter financial results on Friday, November 11.
The company is a Sweden-based joint venture run by Volvo and its parent Geely Holding, and earlier this year was listed on the NASDAQ after a SPAC IPO.
Volvo owns just 48 per cent of the company.
Polestar’s volume goal for 2022 requires it to deliver roughly 20,000 vehicles in the final quarter of this year – more than double what it delivered in the third quarter.
The company trimmed back its global annual delivery target in May from 65,000 units to 50,000 units due in part to COVID-19 lockdowns in China, but says it’s on track to reach the reduced goal.
The Polestar 3 SUV won’t enter production until next year, while the Polestar 4 will be revealed next year and the Polestar 5 will arrive in 2024.