Polestar Secures $950 Million Loan Amid Volvo's Withdrawal

The electric vehicle maker aims for financial stability by 2025, cutting jobs and focusing on product development.

Polestar secures a $950 million loan from a consortium of 12 banks, including HSBC and BNP Paribas, after Volvo withdraws its financial support.
The loan aims to provide Polestar with the necessary funds to reach break-even by 2025, amidst challenges such as slowing EV sales and increased competition.
Polestar plans to cut 450 jobs this year as part of its cost reduction efforts, having already reduced its workforce by 10% since mid-2023.
The company is focusing on its product lineup, including the start of production for the Polestar 3 in China and the upcoming Polestar 5.
Geely, Polestar's parent company, pledges full operational and financial support, ensuring access to technologies and engineering expertise for global growth.