Polestar has entered into a credit agreement for a subordinated term loan facility of up to $600 million. The financing arrangement involves a wholly owned subsidiary of Geely Sweden Holdings AB serving as lender.
Highlights
- Polestar secures up to $600 million in subordinated term loan financing from a Geely Sweden Holdings AB subsidiary
- Initial $300 million available immediately; remaining $300 million requires lender consent based on future liquidity needs
- Funds designated for general corporate purposes as the Swedish EV maker continues operations across 28 global markets
- Current portfolio spans four models with two additional vehicles planned through 2028
Financing Terms and Structure
The term loan facility provides Polestar with access to capital for general corporate purposes. The agreement stipulates that while the initial $300 million is available, the remaining $300 million would require lender consent based on Polestar’s future liquidity needs.
The subordinated nature of the loan positions it below senior debt in the company’s capital structure.
Company Overview
Polestar is the Swedish electric performance car brand headquartered in Gothenburg. The automaker currently operates in 28 markets across North America, Europe, and Asia Pacific.
The company’s current lineup includes the Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Future product plans include the Polestar 7 compact SUV, scheduled for introduction in 2028, and the Polestar 6 roadster.
Manufacturing and Sustainability
Polestar currently manufactures vehicles on two continents: North America and Asia. The company plans to expand its manufacturing footprint with Polestar 7 production in Europe.
The automaker has established climate targets including halving greenhouse gas emissions per vehicle sold by 2030 and achieving climate neutrality across its value chain by 2040.
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