Polestar has entered into an agreement for a $300 million equity investment from four institutional purchasers. This transaction successfully completes the company’s strategic goal of raising $1 billion in new equity. The manufacturer intends to use the net proceeds for debt repayment and general corporate purposes.
Highlights
- The $300 million private placement involves 15,511,891 Class A American Depositary Shares.
- This financing follows previous equity rounds conducted in December 2025 and February 2026.
- Participating investors include Crédit Agricole CIB, Vida Finance S.A., Innovator Limited, and Proximastar Holdings.
- The transaction is expected to close by March 19, 2026, subject to customary conditions.
Financing Structure and Shareholder Impact
The investment is structured as a private investment in public equity (PIPE) at a purchase price of $19.34 per ADS. This price aligns with the valuations established during the earlier stages of the $1 billion funding program.
According to Polestar, no individual purchaser in this round will hold more than 5% of the company’s outstanding equity. Furthermore, the purchasers are not subject to lock-up restrictions regarding the resale of these shares.
Operational Strategy and Product Roadmap
Michael Lohscheller, CEO of Polestar, stated the company has successfully strengthened its balance sheet and liquidity over the past four months. He noted that these actions have diversified the shareholder base and improved the company’s free float.
The capital arrives as the brand prepares for a significant product offensive involving four new models through 2028. This roadmap includes the upcoming Polestar 5 and Polestar 7 models.
Support From Geely and Financial Advisory
Geely Sweden Holdings AB supported the transaction through a put option agreement with the institutional investors. This arrangement provides the purchasers with a structured exit path after a three-year period.
BofA Securities acted as the exclusive financial advisor to Polestar for the funding round. The company remains focused on its 2026 fiscal year retail volume targets following this capital reinforcement.
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