Polestar, the Sweden-based electric vehicle (EV) manufacturer, has secured a $200 million equity investment from PSD Investment, a firm controlled by Geely Holding Group’s founder, Li Shufu. Announced on June 16, 2025, the funding was obtained through a private investment in public equity (PIPE), a streamlined method for raising capital with fewer regulatory hurdles. The investment will bolster Polestar’s global expansion efforts and enhance its competitive stance in the rapidly evolving EV market.

The deal involves issuing 190,476,190 new Class A American Depository Shares to PSD Investment at $1.05 per share. To maintain voting power below 50%, PSD Investment will convert 20 million shares to a different classification. This strategic move provides Polestar with immediate liquidity to address working capital needs and general corporate expenses, supporting its ambitious growth targets.

Despite delivering 44,851 EVs in 2024, Polestar faced a $2 billion loss, reflecting the financial challenges of scaling in the competitive EV sector. The company’s stock also dipped below Nasdaq’s $1 minimum bid price in July 2024 but rebounded by September, securing its market listing. In a recent shareholder letter, CEO Michael Lohscheller emphasized the company’s "significant investments" in brand-building across 27 markets, projecting 2025 as Polestar’s strongest year for sales and financial performance.

Polestar’s Q1 2025 results showcased a 76% year-over-year sales increase, with over 12,300 vehicles delivered. Net revenue grew by $278 million, an 84.2% rise, attributed to higher sales volumes and a favorable product mix. However, new tariffs pose challenges, prompting Polestar to optimize production strategies. The company has begun manufacturing its Polestar 3 SUV at Volvo Cars’ Ridgeville, South Carolina plant, reducing import costs and aligning with U.S. incentives for domestic production.

Globally, Polestar expanded into France in June 2025, introducing the Polestar 2, Polestar 3, and Polestar 4 models. The company aims to launch five performance EVs by 2026, broadening its portfolio to compete with Tesla and legacy automakers. The $200 million investment will also support advancements in battery technology and vehicle performance, critical for attracting buyers in the luxury EV segment. For instance, the Polestar 3 offers a driving range of approximately 300 miles (483 kilometers), positioning it competitively in the SUV market.

Economically, the funding is expected to create jobs at facilities like Ridgeville, where production capacity is scaling up. Regulatory-wise, U.S. production helps Polestar navigate tariffs, potentially lowering costs for American consumers. For EV enthusiasts, Polestar’s expansion signals more model choices and improved availability, with features like over-the-air software updates enhancing the ownership experience.

With fresh capital, Polestar is well-positioned to accelerate growth, tackle market challenges, and solidify its role in the global EV landscape, offering promising prospects for drivers and investors alike.