Polestar receives a $600 million "injection": The Swedish brand's strategy to stay in the electric race

In an automotive landscape marked by fierce competition and a temporary slowdown in demand for electric vehicles, Polestar has announced a strategic move vital to its future. The Swedish manufacturer has secured a new $600 million loan from its majority shareholder, Chinese group Geely Holding.

This capital infusion comes at a critical time, when many startups in the EV (Electric Vehicles) segment are struggling with liquidity management and the huge costs of developing new technologies.

Loan Details: A Safety Net from Geely

The loan, provided by Geely’s Swedish subsidiary, is structured as a “subordinated” loan. This financial terminology is key: It means the debt is not counted under Polestar’s existing debt covenants (set at around $5.5 billion). This allows the company to finance its operations without breaching risk thresholds imposed by other lenders.

The agreement is divided into two tranches:

1.     $300 million is immediately available for general corporate needs.
2.     $300 million represents an additional tranche that will require lender approval, depending on the evolution of Polestar's liquidity needs.

Who is Polestar? From track performance to sustainable luxury

For those less familiar with the automotive industry, Polestar is not a new name, but its current identity is a modern one.

•     Origins: The brand began in 1996 as Flash Engineering, a Swedish motorsport team that prepared Volvo cars for racing.
•     Volvo Partnership: Later renamed Polestar Racing, the company became Volvo's official performance partner (similar to BMW's M division).
•     Independence: In 2017, Polestar was launched as a standalone brand, focused exclusively on high-performance electric vehicles, under the joint patronage of Volvo Cars and Geely Holding.
•     Philosophy: The brand is defined by Scandinavian minimalism, cutting-edge technology (being the first to integrate the Android Automotive operating system), and a radical commitment to sustainability.

Polestar in Romania: Models and Prices

Although Polestar does not yet have a network of physical representations (its own showrooms called "Polestar Spaces") as extensive as traditional brands, the cars can be purchased in Romania through importers specializing in premium/electric vehicles or by direct purchase from neighboring European markets.

Here are the main models available and the estimated prices for our market:

Prices may vary depending on features, "Rabla Plus" subsidies (if applicable) and import costs.

What's next for the Swedish brand?

The $600 million loan gives Polestar the breathing room it needs to complete its new model launches and reach profitability. The company has already announced plans for the Polestar 5 (a luxury GT) and Polestar 6 (a spectacular roadster), demonstrating that despite the financial challenges, its ambition to redefine electric luxury remains intact.

For Romania, the growth of charging infrastructure and the growing appetite for premium electric cars make Polestar an increasingly visible alternative to established German brands or the ubiquitous Tesla.