Polestar, the Swedish electric performance car company, has raised $550 million (USD) from a group of long-term financial investors.
The private placement of newly issued shares marks the first time external investors have backed Polestar’s products, brand, industrial capability, financial ambitions and high growth potential.
The new investments come as the global market for electric cars is growing strongly, with consumers increasingly prepared to combine e-mobility with their environmental aspirations. Simultaneously the technology behind electric cars is advancing and becoming more economical, making mass consumer adoption of EVs an imminent reality.
These factors led to Polestar attracting considerable interest from a range of external investors as part of its fund-raising activities. Polestar also confirms 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 SK Inc., the South Korean global conglomerate, and a range of other investors.
The new investment sets the stage for future growth by diversifying its funding structure. It deepens the pool of resources available to accelerate product development and technological capabilities ahead of launching several ground-breaking cars in the coming years.
Since the brand’s launch in October 2017, the company has developed its own high-quality manufacturing facility in China, built a global sales and distribution operation, and successfully launched two vehicles, the Polestar 1 and Polestar 2, to extremely positive customer feedback and media reviews.
“Our new investors have recognized that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric,” said Thomas Ingenlath, CEO of Polestar.