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Polestar receives $2.49 billion in funding

Electric vehicle brand Polestar announced that it has received US$1.6 billion (AUD 2.49 billion) in financial support from major shareholders.

That figure includes US$800 million ($1.24 billion) from Volvo, another brand in the Geely empire. Volvo’s investment comes in the form of an 18-month loan, with an equity conversion option.

The other major shareholder, PSD Investment, provided an equal amount of direct and indirect financial and liquidity support.

“We welcome continued support from our major shareholders at a time of volatile and unpredictable capital markets,” said Polestar CEO Thomas Ingenlath.

“With enough capital until 2023, we remain focused on the business. Currently, we have about 70,000 cars in circulation and are on track to achieve our goal of delivering 50,000 cars to customers by 2022.

“We are making strong progress on our ambitious plan 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 company Geely Holding, and earlier this year was listed on NASDAQ following the SPAC IPO.

Volvo owns only 48% of the company.

Polestar’s quantity target for 2022 requires it to delivered about 20,000 cars in the last quarter of this year – more than double what it delivered in the third quarter.

The company cut its global annual delivery target for May from 65,000 to 50,000 units in part due to the COVID-19 lockdown issues in China, but said it was on track to meet its reduction target. .

With Polestar 1’s demise, it relied only on Tesla Model 3-rivalling Polestar 2 for now.

The Polestar 3 The SUV won’t go into production until next year, while the Polestar 4 will be revealed next year and the Polestar 5 will arrive in 2024.

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