Polestar Automotive Secures $950M in Funding from Global Banks

Polestar Automotive Holding UK Limited, traded as PSNY on the NASDAQ exchange, has recently experienced a surge in its stock prices following the successful securing of $950 million in external funding from 12 international banks. This funding, in the form of a three-year loan facility, will provide the company with the necessary financial resources to support its next stage of development and cover the majority of its financing needs.

In conjunction with this financial achievement, the company has embarked on a comprehensive efficiency program which has involved a 10% reduction in its workforce since mid-2023, with plans for an additional 15% reduction in 2024. Thomas Ingenlath, CEO of Polestar Automotive, expressed gratitude for the support from the syndicate of global banks, noting that their backing reflects confidence in the company’s growth trajectory. He emphasized the crucial support and access to innovative technology and engineering expertise provided by Geely, Polestar’s parent company, in reinforcing the company’s path towards achieving cash flow break-even by 2025.

Looking ahead, Polestar Automotive is set to release its fourth-quarter financial results before the market opens on Thursday, with a conference call to discuss the results at 8:00 a.m. ET. Analysts estimate that the company will report losses of 15 cents per share and quarterly revenue of $756.514 million.

As a result of this positive news, the stock prices of Polestar Automotive have seen a significant increase, with shares trading 19.5% higher at $1.78 at the time of publication, according to Benzinga Pro.

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This recent development in Polestar Automotive’s financial endeavors and its ongoing efforts towards efficiency reflect the company’s commitment to sustainable growth and financial stability. With the support of global banks, coupled with the resources and expertise provided by its parent company, Polestar Automotive is poised for significant progress in the electric vehicle market.