The transaction does not require regulatory approval and is expected to close by February 5, 2026. On February 2, Polestar, the Swedish EV brand backed by Geely and Volvo, announced a $400 million equity investment by Feathertop Funding Limited, an affiliate of Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited, with each contributing $200 million. In terms of transaction structure, the arrangement mirrors Polestar’s equity financing completed in December 2025. Polestar 4 Both financial institutions entered into put option agreements with a wholly owned subsidiary of Geely Sweden Holdings AB, granting them the right to exit the investment under predefined conditions after three years. Following the completion of the transaction, neither institution will hold more than 10% of Polestar’s outstanding shares. At closing, the subscription price for the Class A American Depositary Shares was set at $19.34 per ADS, consistent with the pricing of the December 2025 equity financing. Subject to compliance with applicable securities laws, there are no restrictions on the sale of the Class A ADS acquired by the two investors. The transaction does not require regulatory approval and is expected to close by February 5, 2026. Looking back, on December 19 last year, Polestar secured a combined $300 million equity investment from Banco Bilbao Vizcaya Argentaria and Natixis, under terms largely identical to the current financing. Document outlining a term loan agreement involving Polestar and Geely In the same month, Polestar also disclosed to the U.S. Securities and Exchange Commission that it had entered into a loan agreement with its controlling shareholder, Geely Holding Group, for an amount of up to $600 million. Commenting on the financing, Polestar CEO Michael Lohscheller said that following a record year for retail sales, the company is continuing to strengthen its liquidity position by introducing long-term capital, while preserving flexibility for future business development. According to company data, Polestar recorded retail sales of around 15,608 vehicles in the fourth quarter of 2025, up 27% year-on-year. Full-year retail sales reached approximately 60,119 units, representing a 34% increase and marking the strongest sales performance in the brand’s history. Polestar sales data in Q4 2025 and FY 2025 In terms of capacity and product planning, Polestar’s current lineup includes the Polestar 2, 3, 4 and 5. Future plans feature the Polestar 7 compact SUV, slated for launch in 2028, as well as the Polestar 6 convertible sports car. On the manufacturing side, Polestar has established production footprints in North America and Asia, with plans to produce the Polestar 7 in Europe. From a capital markets perspective, Polestar had previously faced delisting risk after its share price fell below $1. Following adjustments to the ADS-to-ordinary-share ratio and a subsequent recovery in its share price above $1, the company regained compliance with Nasdaq listing requirements by end-2025.
