Polestar Secures $300 Million Investment, Stock Rises 10.48%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
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Should l Buy PSNY?
Source: Benzinga
- Successful Financing: Polestar announced a $300 million equity investment from Banco Bilbao Vizcaya Argentaria and NATIXIS, with each institution committing $150 million at a price of $19.34 per share, significantly enhancing the company's liquidity and financial stability.
- Equity Structure Optimization: Following the transaction, no single financial institution will own more than 10% of Polestar's equity, which helps to optimize the shareholder structure and boost market confidence through the introduction of external funding.
- Debt-to-Equity Conversion: Geely Sweden Holdings agreed to convert approximately $300 million of Polestar's outstanding debt into equity, expected to be completed after obtaining necessary regulatory approvals, further improving the company's balance sheet and enhancing financial flexibility.
- Transaction Timeline: All transactions are expected to close by December 23, 2025, indicating the company's ongoing focus on liquidity management and capital structure optimization over the next two years to support its long-term growth strategy.
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About PSNY
POLESTAR AUTOMOTIVE HOLDING UK PLC (Polestar) is a Swedish-based electric vehicle manufacturer. Company's portfolio includes Polestar 1, Polestar 2, Polestar 3, Polestar 4 and Polestar 5. Polestar products are currently available on markets across Europe, North America, China and Asia Pacific. Polestar cars are currently manufactured in two facilities in China. Polestar produces electric cars to reduce gas emmisions and develop new technologies to further minimize the carbon footprint.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Exit Mechanism Design: Investors entered put option agreements with a wholly owned subsidiary of Geely Sweden Holdings, allowing banks to sell their stakes back after three years under predefined return conditions, providing a structured exit if market conditions change.
- Significant Sales Growth: In 2025, Polestar's retail sales surged 34% year-on-year to 60,119 cars, demonstrating strong demand and growth potential in the electric vehicle market.
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See More
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- Transparent Equity Structure: Under the agreement, both banks will purchase Class A American Depositary Shares at $19.34 per share, with the option to sell their stakes within three years, ensuring neither institution will own more than 10% of Polestar's outstanding equity.
- Liquidity Enhancement: The CEO of Polestar stated that this financing will further enhance the company's liquidity position and strengthen its balance sheet, indicating positive progress in financial management.
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See More
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- Exit Mechanism: The financing arrangement includes a put option agreement with a wholly owned subsidiary of Geely Sweden Holdings, providing the financial institutions with an exit path within three years, ensuring investors can secure certain returns if necessary, enhancing investment flexibility.
- Similarity in Terms: The terms of this financing are similar to the equity financing arrangements announced by the company in December 2025, indicating Polestar's consistency and stability in the capital markets, which may attract more investor interest.
- Market Performance: Polestar reported record retail sales in 2025 and secured a new term loan facility of $600 million, further solidifying its competitive position in the electric vehicle market.
See More
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- Exit Mechanism: The financial institutions have entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings, providing an exit path within three years, which enhances the attractiveness of the investment by ensuring potential returns.
- Price Stability: The purchase price for each Class A ADS is set at $19.34, the same as in the December 2025 financing, and the lack of restrictions on the sale of ADSs will help maintain market liquidity and investor interest.
- Future Outlook: CEO Michael Lohscheller stated that the new financing will further enhance the company's liquidity and balance sheet, allowing Polestar to focus on achieving its sustainability goals after a record year of retail sales.
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