Polestar has secured a $200 million equity investment from PSD Investment Limited, an existing shareholder controlled by Eric Li, founder and chairman of China’s Geely Holding Group. The move signals continued support from Geely as Polestar navigates intensifying global competition and the financial headwinds facing the electric vehicle (EV) sector.
The cash infusion arrives as Polestar posted a net loss of $190 million in the first quarter of 2025 and follows Volvo Cars’ decision earlier this year to cease further funding and shift full responsibility for the brand to Geely. Based in Gothenburg, Sweden, Polestar said the funds will be allocated to “working capital requirements and general corporate purposes.”
The investment will be made through a private investment in public equity (PIPE), with Polestar issuing 190,476,190 new Class A American Depositary Shares (ADS) at $1.05 per share. In a bid to maintain voting power below 50%, PSD Investment plans to convert 20 million of its Class B ADS into Class A shares prior to the PIPE’s completion.
“The Company is still at an acceptable debt level in relation to its loan covenants,” Polestar said in a previous statement, reaffirming ongoing efforts to secure additional equity and debt funding in collaboration with Geely.
Polestar’s stock has declined about 2% in 2025 but remains up 22% over the past year. Cantor Fitzgerald analyst Andres Sheppard reiterated a “Neutral” rating on Monday.
In corporate governance updates, board members Karen Francis and David Wei will not seek re-election, while David Richter and Daniel Li plan to resign following the company’s annual general meeting. On the product side, Polestar began U.S. sales of the 2026 Polestar 4 this month, priced from $56,400, with production scheduled to start in South Korea and deliveries expected in fall 2025. The brand also launched orders in France last week, expanding its footprint to 28 markets globally.