Polestar secures $400 million investment

Swedish electric car company Polestar just got a major financial boost. Two big banks, Sumitomo Mitsui and Standard Chartered, have invested $400 million into the brand, with each bank committing $200 million. The financial boost comes at a busy time for the carmaker as it works to grow its business and sell more electric cars around the world. The deal is expected to finish by February 5, 2026.

The new money will help Polestar stay steady. The company has had some tough times lately with high debt and losses. To keep its spot on the Nasdaq stock market, Polestar recently did a reverse stock split, changing the stock price from less than $1 to about $18. In this new deal, the banks are buying shares at $19.34 each. Even with this big investment, neither bank will own more than 10% of the company.

Polestar is also changing how it sells its electric cars. In the past, it mostly sold cars online. Now, the company is moving toward a traditional model with car dealers. Polestar has already grown its sales network by 50% outside of China, where all of its 30 stores have been closed in order to focus on this new way of selling. CEO Michael Lohscheller says they are now focusing heavily on Europe because it is the strongest market right now.

The numbers show that people are buying more Polestar vehicles. In the last three months of 2025, sales jumped 27% to 15,608 cars. For the whole year, the company sold 60,119 electric cars. Most of those sales - about 78% - happened in Europe. The United States and China have been difficult markets due to high competition, and Europe has become a bright spot for the brand.

To avoid high import tariffs, Polestar is moving where it makes its cars. The production is slowly shifting to South Korea and Europe. The Polestar 4 will be built in Busan, South Korea, for the American market. This EV features a 100 kWh battery and can travel up to 300 miles on a full charge. It is 15.88 ft long and 7.02 ft wide, making it a spacious choice for families who want to go green.

Another popular model is the Polestar 3. This luxury SUV is a powerful machine with up to 517 horsepower and a range of 350 miles. It is roughly 16.1 ft long, giving it a commanding presence on the road. By making these cars in different countries, Polestar hopes to keep prices fair and reach more customers without getting hit by trade fees between nations.

The company's majority owner, Geely, continues to provide a lot of support. Polestar uses Geely's technology and supply chains to save money and build cars faster. This partnership is a big reason why Polestar can keep launching new models like the upcoming Polestar 5 and Polestar 6. Even though the company is still losing money, the $400 million investment shows that big banks believe in its future.

Polestar plans to share more news about its finances and new products on February 18. With record sales in 2025 and new funding in the bank, the company is definitely picking up speed as it tries to prove it can survive the long road to profitability.

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