Swedish electric vehicle maker Polestar said it has secured $400 million in equity financing from major international financial institutions as it works to bolster its liquidity and navigate ongoing market challenges. The funding round was led by Feathertop Funding Limited, a special purpose vehicle backed equally by Sumitomo Mitsui Banking Corporation and Standard Chartered Bank (Hong Kong).
Under the terms of the agreement, each institution contributed $200 million toward the equity investment. Simultaneously, they entered into put option arrangements with a subsidiary of Geely Sweden Holdings AB, Polestar’s majority owner, providing the lenders with an exit mechanism after three years under specified conditions.
Polestar’s chief executive, Michael Lohscheller, said the new financing builds on prior funding announced in December and, along with continued support from Geely, will help the company strengthen its balance sheet and extend its runway during a period of heightened financial pressure.
The agreement sets the purchase price of Polestar’s Class A American Depositary Shares at $19.34 per share, the same level used in the December financing. After the deal is finalized, neither Sumitomo Mitsui nor Standard Chartered will own more than 10% of Polestar’s total equity, and there are no trading restrictions on the shares they receive beyond standard securities laws.
The transaction is expected to close by Feb. 5, 2026, with no regulatory clearances required, Polestar said. BofA Securities served as the company’s exclusive financial advisor on the transaction.
Polestar, known for its performance-oriented electric cars sold across North America, Europe and Asia Pacific, has been working to strengthen its finances amid slower global EV demand and significant cash burn. The company offers several models, including the Polestar 2 and Polestar 3, and plans further expansion of its product line in the coming years.
