Swedish electric vehicle manufacturer Polestar has secured a 12-month loan facility of up to $450 million while announcing a delay in the release of its fourth-quarter and full-year 2024 financial results until April.
The company, backed by China’s Geely, has been struggling with slowing demand in a competitive EV market, adding to ongoing financial pressures.
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The delay in financial reporting follows previous postponements and issues with Polestar’s financial disclosures. The company has had to republish statements from past years due to errors and has faced scrutiny from investors regarding its accounting practices. Initially expected to release its fourth-quarter results in March, the company’s latest postponement has raised concerns over transparency and financial stability.
Polestar’s cash requirements remain high as it seeks to expand operations and increase vehicle production. In December, the company secured more than $800 million in 12-month loans to refinance existing debt. The newly acquired funding adds to its growing financial obligations, though Polestar has not disclosed specific details on its intended use.
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A consistent flow of capital is essential for EV startups, many of which have struggled to maintain operations amid rising costs and competitive pressures. Companies such as Nikola have faced similar financial difficulties, with some eventually declaring bankruptcy.
Following the announcement of the loan and earnings delay, Polestar’s U.S.-listed shares fell 2.7% in premarket trading. Investors will closely monitor the company’s financial position in the coming months as it seeks to manage liquidity and sustain its business amid an evolving EV market.
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