Swedish electric vehicle maker Polestar has secured a €174 million equity investment from PSD Investment Limited, a company controlled by Geely Holding Group founder Eric Li.
The deal was structured as a private investment in public equity (PIPE), with Polestar issuing 190 million Class A shares at $1.05 apiece.
Governance changes to maintain voting balance
To maintain voting parity, PSD Investment plans to convert 20 million of its Class B shares into Class A shares before the PIPE closes, ensuring its total voting power stays under 50%.
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Capital earmarked for operations
The company plans to use the funds for working capital and general corporate purposes. This follows a previous €877 million loan facility secured in 2024 from a consortium of global banks including HSBC, BNP Paribas, and Standard Chartered.
Expanding EV lineup and manufacturing footprint
Founded in 2017 by Volvo Cars and Geely, Polestar currently offers three models: the Polestar 2, 3, and 4. Future models include the Polestar 5 GT, Polestar 6 roadster, and Polestar 7 compact SUV. The company aims to have five electric models on the road by 2026 and produce a climate-neutral car by 2030.
Manufacturing currently spans North America and Asia, with plans to add European production starting with the Polestar 7.
