Polestar, the electric vehicle manufacturer, has secured a significant financial boost through a $600 million loan from Geely, its major stakeholder. This development comes as Polestar grapples with substantial financial losses and prepares for upcoming model launches.
Polestar’s Financial Performance
In the third quarter of 2025, Polestar reported a net loss of $365 million. This figure marks a 13% increase in losses compared to the same quarter last year. For the period from January to September 2025, the company’s total net losses reached $1.56 billion, an alarming 80% rise year-on-year.
Revenue Growth Amid Losses
Despite these losses, Polestar experienced a notable increase in revenue. From January to September 2025, revenue soared by 48.8%, totaling $2.17 billion. However, the company’s gross margin has plummeted to -34.5%, partly due to a write-down of $739 million on the underwhelming performance of the Polestar 3 SUV.
Challenges Ahead
Polestar faces significant hurdles as it prepares for the launch of the Polestar 5, a high-end grand tourer featuring a powerful 650 kW powertrain. Moreover, the company risks delisting from the Nasdaq stock exchange due to its share price dipping below the $1 mark for an extended period.
Strategies for Stability
In response to these challenges, Polestar has initiated several measures. One key strategy included a ‘reverse split’ of its American Depositary Shares. This maneuver consolidated every thirty shares into one new share, raising the share price to approximately $12, thus avoiding delisting.
Details of the $600 Million Loan
The recent $600 million loan from Geely is structured as a subordinated loan. This means that in the event of insolvency, Geely will be repaid only after senior creditors. Immediate access to half of the loan is available to Polestar, bolstering its liquidity.
- This loan could encourage banks to provide additional credit on favorable terms.
- Geely Sweden, a subsidiary of the Chinese Geely Group, is one of Polestar’s largest shareholders.
Investments from Geely’s Leadership
Further demonstrating their commitment, Geely founder Li Shufu injected $200 million into Polestar in June 2025 through a share capital increase. This move elevated Shufu’s investment stake in Polestar to 44%, with a total control of 66% of shares, including those held by Geely’s subsidiary, Volvo Cars.
Overall, with Volvo’s 16% stake included, Li Shufu’s empire holds approximately 80% ownership of Polestar, solidifying its dominant position in the company’s future prospects.
