Polestar raises $550 million from new investors
Swedish electric car company Polestar, controlled by Volvo and its parent company Geely, has recently has raised USD 550 million from a group of long-term financial investors. And, the company is considering further fund raising.
The private placement of newly issued shares marks the first time external investors have backed Polestar’s products and brand. The new investments come as the global market for electric cars is growing. Ans at the same time, the technologies behind electric cars are advancing and becoming more economical. And as the company announces that it has attracted considerable interest from external investors, it also confirms that it is in ongoing discussions with global investors about possible additional fund raising. 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 SK Inc., the South Korean conglomerate, and a range of other unnamed investors. Polestar says in a press release that the new investment sets the stage for future growth by diversifying the company's funding structure and deepening the resources available to accelerate its product development and technological capability ahead of the launch of several cars in coming years. Since launch three-and-a-half years ago, Polestar has developed its own manufacturing capability in China, built a global sales and distribution operation and successfully launched two vehicles, the Polestar 1 and 2. “Our new investors have recognised that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric,” says Thomas Ingenlath, CEO of Polestar in the press release.