Swedish electric carmaker Polestar has secured $400 million in new equity funding to strengthen its balance sheet and improve liquidity.
The investment comes from two financial institutions. Sumitomo Mitsui Banking Corporation, through its investment vehicle Feathertop Funding Limited, has committed $200 million. On the other hand, Standard Chartered Bank’s Hong Kong unit has matched that amount with another $200 million.
As part of the deal, both banks have signed put option agreements with a wholly owned unit of Geely Sweden Holdings. This gives investors a potential exit after three years, if needed, under agreed terms of return. Polestar said the structure is similar to the equity financing it announced in December 2025.
In 2025, the Swedish company raised $200 million in equity investment from PSD Investment Limited, a long-time backer and an entity controlled by Eric (Shufu) Li, founder and chairman of Geely Holding Group.
Focusing on improved financial position
Polestar CEO Michael Lohscheller said the funding builds on recent capital raises and strong sales momentum. He noted that the company is focused on improving its financial position after delivering a record year for retail sales, with backing from Geely Holding.
Following the closing of the deal, neither Sumitomo Mitsui Banking Corporation nor Standard Chartered Bank will own more than 10% of Polestar’s outstanding shares.
The shares are priced at $19.34 per Class A ADS, the same level as the December equity raise. The banks will be free to sell the shares they receive, subject to standard securities rules.
The transactions are expected to close by February 5, 2026, and Polestar said no regulatory approvals are required. BofA Securities is acting as the company’s exclusive financial adviser on the deal.
Based out of Gothenburg, Polestar sells its electric vehicles in 28 global markets across North America, Europe, and Asia-Pacific. Its current lineup includes the Polestar 2, 3, 4, and 5, with new models such as the Polestar 7 compact SUV planned for later this decade.
The company has also set long-term sustainability goals, aiming to cut vehicle emissions by half by 2030 and become climate-neutral across its value chain by 2040.
