Camilla Jessen
As the electric car brand burns through its cash and faces heavy debt, Polestar is actively searching for new investors.
Electric car maker Polestar is in financial trouble and is now looking for new owners or investors to help keep the company going.
In the latest quarter, Polestar lost around $178 million USD, down from $259 million the year before—but it’s still losing more money than it makes.
At an investor meeting, CFO Jean-François Mady admitted that the company needs more money to continue. This was reported by Boosted.
We are talking to potential investors. We are working on getting new owners,
Mady added that while the situation isn’t yet a crisis, Polestar’s current cash level isn’t enough to last if things continue as they are.
Polestar now has just over $1 billion USD in cash—but that may not be enough to make it through 2025. On top of that, the company is carrying a massive $6.9 billion USD in debt.
Because of this, Polestar has already had to renegotiate several loans after breaking rules set by its lenders.
“We need to raise our cash level,” Mady said.
Geely Still Backing Polestar—Up to a Point
Polestar is currently 81% controlled by Geely Group founder Li Shufu, through Geely Sweden, Volvo Cars, and PSD Investment.
But Volvo Cars sold much of its stake in Polestar in 2024, and now holds just 18%.
While Geely has helped cover Polestar’s losses so far, the company is now hoping to bring in outside investors to take over that role.
“It’s too early to say more, but something is coming,” Mady said about new investors.
Even though Polestar has cut its losses, it’s not making enough money to cover its costs.
Without new investment, the company may struggle to stay in business or launch new car models.