Polestar Secures Major Equity Investment to Fuel EV Ambitions

The electric vehicle manufacturer Polestar has bolstered its financial position with a significant capital infusion. The company has raised $400 million in new equity, providing crucial resources as it seeks to expand its footprint in the competitive premium EV segment.

• Investment Size: $400 million in equity financing.
• Key Backers: The funding was provided by Sumitomo Mitsui Banking Corporation and Standard Chartered Bank (Hong Kong).
• Share Price: The new shares were issued at a price of $19.34 each.

This capital raise arrives at a pivotal moment for the global automotive industry. While forecasts suggest electrified vehicles could represent up to 30% of total sales by the end of 2026, growth rates for pure battery-electric vehicles (BEVs) are moderating in several key markets. Shifts in government subsidies and evolving regulations add a layer of complexity for all players.

Polestar intends to deploy the fresh capital to navigate these market dynamics, supporting the launch of new models and an expansion of production capacity. The move is designed to strengthen the company's standing within the premium EV sector.

The transaction was executed through Feathertop Funding Limited, a special purpose vehicle established by the two banking institutions. Each bank contributed $200 million to the deal. The per-share issuance price aligns with the terms set during a previous financing round in December 2025, when Polestar secured $300 million from Spain's BBVA and France's Natixis.

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A notable feature of the agreement involves investor safeguards. Each bank will hold under a 10% stake and has secured put options with a subsidiary of Geely Sweden Holdings. This structure provides the investors with a guaranteed exit path after a three-year period, offering clarity on potential returns.

Navigating a Complex Operating Landscape

Beyond shifting demand, the industry faces additional headwinds. Potential tariffs on vehicle imports and critical battery components threaten to increase production costs and complicate market access strategies. For Polestar, effective cost management and robust sales performance for its new vehicle lines will be critical metrics for success.

Investors are awaiting further operational and financial details, which will be disclosed in Polestar's upcoming quarterly report scheduled for release on February 24, 2026. This report is expected to provide a comprehensive view of the company's performance and its strategic outlook for the current fiscal year.