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Polestar Secures $200 Million Equity Investment and Prepares to Launch New Electric Vehicles
- Polestar, a Swedish electric vehicle brand, secures a $200 million equity investment from PSD Investment, controlled by Geely Holding Group Founder Shufu Li.
- The investment will be used for working capital needs and general corporate purposes, according to a press release.
- Polestar manufactures electric cars in North America and Asia, plans to expand production in Europe, and operates in 28 markets globally.
- Geely Holding Group, with interests in Polestar, Volvo, and Lotus, has invested in the automotive sector.
- Polestar, like other electric vehicle makers, required additional funding due to market conditions and competition.
- Volvo reduced its stake in Polestar and ceased financial support in 2023 to focus on its own innovations and production.
- Polestar aims to launch three new vehicle models, including a four-door GT, a roadster, and a compact SUV, supported by the investment.
- In the first quarter, Polestar reduced its net loss by 31% and secured over $900 million financing during the quarter.
- First-quarter sales increased by 76% year over year to 12,304 units, with revenue rising by 84%.
- Polestar attributes its growth to new model uptake, higher volumes, and a shift to higher margin models.
- The company's CEO, Michael Lohscheller, noted progress in commercial operations, improved margins, positive gross margin at 7%, and reduced net loss.
- Polestar continues to enhance its sales operations and reduce costs.
- The news was reported by PYMNTS.com.
- Polestar aims to expand its offerings in the electric vehicle market with the funding secured.
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