Polestar Receives $200 Million Investment from PSD Investment

In a significant development, Polestar, a premium electric vehicle manufacturer, announced that it has secured a whopping $200 million equity investment from PSD Investment, a private investment firm closely linked to the Chinese conglomerate Geely. This investment solidifies PSD Investment, which is already a substantial shareholder of Polestar, in the Swedish company.

As part of this deal, Polestar plans to sell approximately $183 million worth of its newly issued Class A shares (ADS) to PSD Investment via a public private equity investment (PIPE). The stake sale will give Geely's controlling shareholder, Li Shufu, a significant 66% stake in Polestar. Following this acquisition, Li Shufu would also assume control over Volvo Car Corporation's stake in Polestar, which has plummeted from 18 percent to 16 percent.

The pipeline investment comes at a crucial juncture for Polestar, and the injection of capital will undoubtedly play a pivotal role in bolstering its operations. However, it might not be enough to fully address Polestar's current financial challenges.

Polestar revealed that the private investment transaction seeks to provide working capital for general business purposes. In order to maintain control and voting rights below 50%, PSD Investment plans to convert around $20 million of its existing B-Class ADS stock into A-Class shares before the deadline for the deal.

The investment is taking place at Polestar, which finds itself dealing with critical cash flow issues as of late. For Polestar, $200 million does not seem like enough when you consider that its market capitalization currently stands at $2.17 billion and it has debts worth approximately $51.2 bn.

For the Chinese car brand on our reference list such as Polestar 2,3 & 4 there have been three different versions that have gone under Chinese Sale including:

• The price of the 2024 Polestar 2 (from $44.45 thousand) ranges from $40 to $72,
• Polastar 3 is priced around range 29.98 -79.8 million as compared above

Global sales reached 44890 units in year 2024 representing a down fall from last Year's 52891, and China for Polestar’s Sales of the Polesstar Vehicle models dropped to :

• 2021 had 2,048 vehicles
• 2023 had 1,717
• as up until mid of 2024 sold 1612 units