Polestar Automotive Holding UK PLC closed a $400 million equity investment on February 2, 2026. The capital was raised through Feathertop Funding Limited, a special‑purpose vehicle backed by Sumitomo Mitsui Banking Corporation and Standard Chartered Bank, each contributing $200 million. The transaction is expected to close on February 5, 2026, and will be priced at $19.34 per Class A ADS, matching the company’s December equity financing.
Polestar’s balance sheet has been under pressure for several quarters. The company reported a net loss of $1.17 billion and an operating loss of $1.46 billion in 2023, and has been burning cash at a rate that has tightened its debt covenant. The new equity injection provides a much-needed liquidity cushion, allowing Polestar to meet debt obligations, fund ongoing operations, and pursue strategic initiatives without immediate refinancing pressure.
The financing comes at a time when Polestar is accelerating its shift toward higher‑priced SUVs, such as the Polestar 3 and Polestar 4. By bolstering its capital base, the company can sustain the ramp‑up of these models, support marketing and dealer incentives, and absorb tariff‑driven cost inflation that has affected vehicles manufactured in China. The injection also gives Polestar room to manage pricing competition while maintaining its premium positioning.
Polestar CEO Michael Lohscheller said, “Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet. With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.” The statement underscores the company’s intent to translate the capital raise into operational resilience and sustained growth.
This $400 million round is part of a broader capital‑raising effort that included a $300 million equity investment and a $300 million debt‑to‑equity conversion in December 2025, as well as a $600 million term loan facility secured in the same month. The pattern of multiple funding rounds signals ongoing liquidity needs, but the recent equity injection also reflects Polestar’s commitment to maintaining a robust balance sheet as it navigates a competitive EV market and regulatory headwinds.
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