Geely Extends $600 Million Lifeline to Struggling EV Maker Polestar

Polestar Auto.adr/a US7311052010

In a critical move to bolster its financial position, electric vehicle manufacturer Polestar has secured a substantial credit facility from its majority shareholder, Geely. The subordinated loan arrangement provides access to up to $600 million, offering a temporary reprieve as the company navigates significant operational losses and a steep decline in its share price.

The financing package is structured in two distinct tranches. An initial $300 million is committed and immediately available to Polestar. A second, uncommitted facility of $300 million is conditional, with its drawdown subject to Geely’s approval based on unspecified criteria. This conditional nature suggests the automaker must meet certain performance benchmarks to access the full amount.