A family that is easy to talk to. Geely and Volvo jointly raised 3.3 billion yuan for capacity enhancement.

A Welcoming and Approachable Family Geely and Volvo Raise 3.3 Billion Yuan to Improve Capacity

【PhoneAuto News】On November 9th, Stockholm-based luxury electric car brand Polestar raised a total of $450 million in funding, equivalent to approximately 3.3 billion Chinese yuan, through its two key supporters, Volvo and Geely Holding Group. This funding will be used to support Polestar’s goal of more than doubling its car production in the next two years.

Polestar Electric Cars

Geely Chairman Li Shufu is the largest shareholder of Polestar. In a statement, Polestar announced that Volvo will provide $200 million in new financing, while an affiliated company of Geely Holding will contribute $250 million. These two supporters have also extended Polestar’s existing loan terms by three years until 2027.

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Polestar’s aim is to achieve cash flow breakeven in 2025, with annual production reaching at least 155,000 vehicles. However, this year Polestar has revised its production expectations to approximately 60,000 vehicles, lower than the previously projected 70,000 vehicles in May and the initial target of 80,000 vehicles. This is mainly due to delays in car launches and intensified market competition.

Meanwhile, Polestar has released its financial results for the third quarter. Polestar’s Q3 revenue reached $613.2 million, a 41% increase year-over-year. Despite increased sales and price hikes, the company’s adjusted EBITDA loss amounted to $214 million, higher than the $176 million loss in the same period last year. Polestar explained that this is primarily due to increased inventory and supply chain issues related to batteries and semiconductors, leading to a decline in gross profit margin.

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