After Volvo Cars announced that it would stop providing funding for Polestar, Polestar Motors officially announced today that it had obtained US$950 million (Note: currently about 6.85 billion CNY) in external financing to fill the gap.
Polestar also forecasts that its gross profit margin will reach double digits by the end of 2024, and it expects to achieve its goal of cash flow breakeven by 2025. The automaker has previously said it would need $1.3 billion in external funding to break even by 2025.
According to reports, the financing is a three-year loan jointly provided by 12 banks including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC and Shanghai Pudong Development Bank.
“Sales and margins are expected to grow in the second half of 2024 as both SUVs commence full production and global distribution,” the company said of the launch of the Polestar 3 and 4 models this year.
