Volvo will continue to support the growth of Polestar with financial support via an 18 month loan worth $800M USD. The loan also allows Volvo an option to convert the amount to equity based on future funds raised by Polestar.
The loan amount matches that provided by Polestar’s other shareholder, PSD Investment. The two loans should provide the company with enough funds to weather 2023.
Polestar was originally established as an electric arm of Volvo with the Swedish parent company still holding 48.3% of the EV sub-brand. It is a massive amount of money to loan but Volvo are adamant that their “strong balance sheet, liquidity and cash” leave them in a position to make such a move.
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Words by Matthew D’Souza, pictures courtesy of Volvo Cars Global Newsroom
