Polestar has raised $550 million from a group of new, long-term financial investors. It is the first time that external investors participated in the private placement of newly issued shares.
According to the company (part of Geely), the favorable market situation enabled it to attract considerable interest from investors and additional fund raising is under consideration.
"These factors led to Polestar attracting considerable interest from a range of external investors as part of its fund-raising activities. It can confirm today it is in ongoing discussions with global investors about possible additional fund raising.
Full financial details of the transaction are not being disclosed at this stage.
The group of investors is led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment. They have been joined by I Cube Capital, an arm of SK Inc., the South Korean global conglomerate, and a range of other investors."
That would explain why the company is looking to secure financing for future growth. Launching new cars on the market is expensive.
We guess that sooner than later, Polestar will announce a bigger model - sporty crossover/SUV. Maybe even as a fourth model, right after the Precept?
During its first three-and-a-half years, Polestar gradually expanded its global sales and distribution operation and is trying to become a stand-alone manufacturer, benefiting from Volvo/Geely platforms.
Most recently, the company has added a few additional versions (new single motor, and smaller battery options) of the Polestar 2 model.