GOTHENBURG, Sweden — February 2, 2026
Executive Summary
Polestar (Nasdaq: PSNY) has announced a USD 400 million equity financing involving two global financial institutions, Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited. Each institution has committed USD 200 million as part of the transaction. Concurrent with the equity investment, both financial institutions have entered into put option arrangements with a wholly owned subsidiary of Geely Sweden Holdings AB, providing a defined exit mechanism after three years under specified conditions. According to the company, the transaction follows equity financing arrangements announced in December 2025 and is intended to support Polestar’s liquidity position and balance sheet. The equity financing is expected to close by 5 February 2026 and does not require regulatory approvals.
Announcement Overview
Polestar announced that it has entered into an equity financing arrangement totaling USD 400 million, with participation from two financial institutions that will each invest USD 200 million in the company. The investors are Feathertop Funding Limited, consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited.
According to Polestar, the equity investment includes a put option structure entered into concurrently with the purchase of equity. These arrangements involve a wholly owned subsidiary of Geely Sweden Holdings AB and provide the investing financial institutions with a potential exit path after three years, subject to certain return conditions. The company stated that the terms of the financing are similar to those announced in December 2025.
Polestar indicated that following the closing of the transaction, neither financial institution will hold more than 10 percent of Polestar’s outstanding equity. The company further stated that the transactions are expected to close by 5 February 2026 and that no regulatory approvals are required for completion.
BofA Securities is acting as Polestar’s exclusive financial advisor in connection with the transaction.
Key Announcement Details
- Announcement type: Equity financing
- Total financing amount: USD 400 million
- Investors: Feathertop Funding Limited and Standard Chartered Bank (Hong Kong) Limited
- Investment size per investor: USD 200 million
- Equity instrument: Class A ADS
- Price per Class A ADS: USD 19.34
- Put option counterpart: Wholly owned subsidiary of Geely Sweden Holdings AB
- Put option term: Three years
- Maximum ownership per investor post-closing: Below 10 percent
- Expected closing date: By 5 February 2026
- Regulatory approvals: None required
- Financial advisor: BofA Securities
Transaction Structure and Equity Investment Terms
According to Polestar, the USD 400 million equity financing consists of two equal investments by the participating financial institutions. Each institution will purchase Class A American Depositary Shares at a price of USD 19.34 per share, which Polestar noted is the same price used in the equity financing announced in December 2025.
The company stated that, following the closing of the transaction, neither Sumitomo Mitsui Banking Corporation nor Standard Chartered Bank (Hong Kong) Limited will own more than 10 percent of Polestar’s outstanding equity. Polestar also confirmed that the Class A ADSs issued to the financial institutions will not be subject to contractual resale restrictions, except as required under applicable securities laws.
Polestar indicated that the equity investment is accompanied by a put option arrangement designed to provide the financial institutions with a defined exit mechanism. Under this arrangement, each investor has entered into a put option agreement with a wholly owned subsidiary of Geely Sweden Holdings AB. The put option may be exercised after three years and provides the investors with an exit path under certain conditions, including specified returns.
The company stated that this structure mirrors the equity financing arrangements it announced in December 2025, maintaining consistency in approach across its recent capital-raising activities.
Put Option Arrangement and Shareholder Framework
Polestar explained that the put option arrangements associated with the equity financing are intended to provide flexibility to the investing financial institutions while maintaining stability in the company’s shareholder structure. The put options are held against a wholly owned subsidiary of Geely Sweden Holdings AB, Polestar’s majority shareholder.
According to the company, the put option structure establishes predefined terms for a potential exit after three years, including return parameters, while allowing Polestar to retain access to equity capital in the near term. The company did not disclose specific financial return thresholds associated with the put options.
Polestar stated that the inclusion of the put option does not alter its governance framework or result in the financial institutions exercising control over the company. The ownership limits and structure of the transaction ensure that Polestar remains compliant with applicable listing and ownership requirements.
Relationship to December 2025 Financing
Polestar noted that the USD 400 million equity financing announced in January 2026 follows equity financing arrangements disclosed in December 2025. According to the company, the terms of the current transaction are similar to those of the prior financing.
The company stated that the consistency in pricing and structure reflects continuity in its capital-raising strategy and engagement with institutional financial partners. Polestar indicated that the December financing and the current transaction together form part of a broader effort to enhance liquidity and strengthen the company’s balance sheet.
Leadership Commentary
Michael Lohscheller, Chief Executive Officer of Polestar, commented on the equity financing in connection with the company’s recent funding activities.
“Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet. With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
Liquidity and Balance Sheet Position
According to Polestar, the equity financing is intended to support the company’s liquidity position and balance sheet. The company stated that the transaction builds on prior funding announcements and reflects continued access to institutional capital.
Polestar indicated that the proceeds from the equity investment will be used in accordance with its broader financial strategy. The company did not specify allocation details for the proceeds but referenced balance sheet strengthening and liquidity enhancement as key objectives.
The company also noted the support of its majority shareholder, Geely Holding, in connection with the financing arrangement.
Transaction Timing and Closing Conditions
Polestar stated that the equity financing transactions are expected to close by 5 February 2026. According to the company, no regulatory approvals are required for the completion of the transactions.
The company indicated that customary closing conditions apply and that the timing reflects coordination among the participating financial institutions, Polestar, and its financial advisor.
Role of Financial Advisor
BofA Securities is serving as Polestar’s exclusive financial advisor in connection with the equity financing transaction. According to Polestar, the advisor is supporting the company across transaction structuring and execution.
Company Background and Market Presence
Polestar is a Swedish electric performance car brand focused on design, innovation, and sustainability. Headquartered in Gothenburg, Sweden, the company operates across 28 markets globally, including North America, Europe, and Asia Pacific.
The company’s vehicle lineup currently includes four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Polestar has also announced plans for additional models, including the Polestar 7 compact SUV, which is expected to be introduced in 2028, and the Polestar 6 roadster.
According to Polestar, its vehicles are currently manufactured in North America and Asia, with plans to further diversify its manufacturing footprint. The company stated that production of the Polestar 7 is planned in Europe.
Sustainability Strategy
Polestar has articulated a sustainability roadmap that includes climate, transparency, circularity, and inclusion as core pillars. The company has stated its ambition to halve greenhouse gas emissions per vehicle sold by 2030 and to become climate-neutral across its value chain by 2040.
According to Polestar, its sustainability strategy is integrated into product development, manufacturing, and supply chain operations.
Forward-Looking Statements and Risk Disclosure
Polestar included forward-looking statements in connection with the equity financing announcement. The company stated that certain statements may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and relate to future events or future financial or operating performance.
Polestar noted that forward-looking statements can often be identified by terms such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential,” “forecast,” “plan,” “seek,” “future,” “propose,” or “continue,” and similar expressions.
According to the company, these statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Polestar identified a range of factors that could impact future outcomes, including its ability to maintain partnerships, manage suppliers, raise additional funding, execute cost-cutting initiatives, meet listing standards, respond to market conditions, and manage operational and regulatory risks.
The company also referenced risks related to product development timelines, supply chain disruptions, regulatory changes, competition, market adoption of electric vehicles, geopolitical conflicts, and ongoing or potential litigation and regulatory proceedings.
Polestar stated that forward-looking statements are based on estimates and assumptions considered reasonable at the time but are inherently uncertain. The company noted that it assumes no obligation to update forward-looking statements except as required by law.
About Polestar
Polestar (Nasdaq: PSNY) is a Swedish electric performance car manufacturer headquartered in Gothenburg, Sweden, with a global commercial presence across North America, Europe, and Asia Pacific. The company’s current vehicle portfolio includes Polestar 2, Polestar 3, Polestar 4, and Polestar 5, covering multiple segments within the premium electric vehicle market. Polestar has announced additional models in its future lineup, including the Polestar 7 compact SUV and the Polestar 6 roadster. Vehicle production is currently carried out in North America and Asia, with planned expansion of manufacturing operations into Europe as part of its long-term industrial strategy.
Polestar operates with a stated focus on sustainability and has published climate targets aimed at reducing greenhouse gas emissions per vehicle sold by 50% by 2030 and achieving climate neutrality across its value chain by 2040. The company’s sustainability strategy is structured around four core areas—climate action, transparency, circularity, and inclusion—which guide its approach to vehicle development, manufacturing, and broader operational practices.
Media and Investor Contacts
Anna Gavrilova
Head of Investor Relations
Theo Kjellberg
Head of Corporate Communications
Source Attribution
Source: Company announcement
