Polestar secures $200M injection from Geely-Backed PSD investment amid market challenges

Polestar said on Monday it had secured a $200 million
equity investment
from major shareholder PSD Investment, a company controlled by Geely Holding founder Li Shufu.
The Swedish electric vehicle maker will sell more than 190 million Class A American depositary shares (ADS) to PSD Investment, which will now hold 44 per cent of Polestar.
After the transaction, Li Shufu will hold a total of 66 per cent in Polestar through PSD Investment and the Swedish subsidiary of Geely.
The Swedish automaker has faced challenges in boosting demand for its vehicles amid a softer market and intense competition, and like many other EV makers, had a need for further funding.
While the automaker has received loans from various banks in the past year, further financial support from Geely and Li Shufu, also known as
Eric Li
, have until now not materialized.
The transaction will also reduce Volvo Cars' stake in Polestar to 16 per cent from 18 per cent, after the Swedish automaker cut its holding and halted financial support last year amid analyst criticism over the burden Polestar placed on its resources.
Polestar said the private investment in public equity (PIPE) transaction is intended to provide working capital and fund general corporate purposes.
The company said that prior to the closing of the transaction PSD Investment plans to convert 20 million of its Class B ADS shares into Class A ADS shares, in a bid to keep its total voting power in Polestar below 50 per cent.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hindustan Times

22 minutes ago

• Hindustan Times

Soccer-From fallen giants to giant-killers: Botafogo's remarkable revival

By Fernando Kallas HT Image June 22 - Once Brazilian football royalty, Botafogo had languished for decades as a debt-ridden sleeping giant before they toppled Paris St Germain at the Club World Cup to cap a resurrection tale three years in the making. When American entrepreneur John Textor acquired the club in 2022, fresh from their promotion back to Brazil's first division, he took on a training ground so decrepit that then-coach Luis Castro dismissed it as "good for parking cars," alongside crushing liabilities exceeding one billion reais . Botafogo were a storied but shattered institution. The club that once nurtured Brazilian greats - Garrincha, Zagallo, Jairzinho and Nilton Santos, architects of three World Cup triumphs - was drowning in debt, having endured the humiliation of relegation three times in just over a decade. On Thursday, they outplayed European champions Paris St Germain to win 1-0 in the Club World Cup's most eye-catching upset, propelling themselves to the top of the tournament's "group of death" and on the verge of the knockout stage. Their squad, assembled through shrewd bargain-hunting in football's forgotten corners, now faces Diego Simeone's Atletico Madrid in Los Angeles on Monday, sitting comfortably, knowing even a two-goal defeat would still secure their passage to the round of 16. The victory over PSG vindicated Textor's vision, outlined in a Reuters interview three years prior, of "beating the system" through astute scouting in under-explored talent pools. The architects of Thursday's victory exemplified this approach. Match-winner Igor Jesus arrived as a free agent after three anonymous years in the UAE and was transformed into a Brazil international. Argentine defender Alexander Barboza, who neutralised PSG's vaunted attack, was plucked from Paraguay's Club Libertad for nothing. Captain Marlon Freitas came from second-division Atletico Goianiense, while experienced European campaigners Alex Telles and Allan were revitalised after spells in Middle Eastern leagues. Gregore, Jefferson Savarino, John and Cuiabano were all signed for under two million euros each. "The goal is to be sustainably competitive every year," Botafogo CEO Thairo Arruda told Reuters. "With a top six payroll, we produce like a top three." The transformation extends far beyond the pitch. Revenues have soared from 140 million reais in 2022 to projected earnings exceeding 1.1 billion by 2025, while liabilities have been slashed by 40%. Textor's Eagle Football empire also encompasses stakes in Ligue 1's Olympique Lyonnais and Premier League Crystal Palace. Botafogo's renaissance - crowned by last year's domestic and continental double - has breathed new life into a club motto once heavy with self-pity: "There are things that only happen to Botafogo." After outclassing Europe's elite, those words now carry an altogether sweeter resonance. This article was generated from an automated news agency feed without modifications to text.

Hindustan Times

3 hours ago

• Hindustan Times

Palou wins at Road America to boost IndyCar season lead

Alex Palou won his sixth IndyCar race in nine season starts, the Spaniard holding off Sweden's Felix Rosenqvist to capture Sunday's Grand Prix at Road America on low fuel. HT Image Palou boosted his season points lead by taking his first victory since last month's Indianapolis 500, enduring after 55 laps over the 4.014-mile, 14-turn road course in Elkhart Lake, Wisconsin. "It was a crazy race," Palou said. "Losing a ton of positions and then making them, it was a tough race for everybody." Palou became the first IndyCar driver since A.J. Foyt in 1975 to win six of the first nine races in a campaign. Rosenqvist was second, two seconds back, and American Santino Ferrucci was third, running out of fuel one turn after the checkered flag. Four caution flags in the first 23 laps prompted teams to adopt differing fuel strategies, and by lap 28 it was New Zealand's Scott Dixon leading. American Josef Newgarden was second before crashing on turn 14, leaving Dixon ahead with Palou and Rossi just behind after a lap-31 restart. The race came down to those three trying to conserve fuel over the final laps to reach the end while Rosenqvist, on full fuel in fourth, tried to overtake them. Rossi went to the pits with four laps remaining and Dixon pitted for fuel a lap later, leaving Palou to outlast Rosenqvist with his fuel tank nearly dry. "Kudos to the team for the amazing strategy and Honda for giving us the fuel mileage we needed to make it at the end," Palou said. "Couldn't be happier." Palou, seeking his fourth season title in five years, leads the points chase with 386 with American Kyle Kirkwood, a three-time winner this season, 93 points adrift in second. Palou matched the IndyCar record of three wins at Road America, also held by Mario and Michael Andretti and Emerson Fittipaldi. Rosenqvist settled for second on the track where his only IndyCar triumph came in 2020. js/bb

Business Standard

3 hours ago

• Business Standard

We want to be a people-first organisation: Goldman Sachs CIO Marco Argenti

Engineers need to think about the problem first and not the solution, says Argenti premium Avik Das Bengaluru Listen to This Article Goldman Sachs, the storied American investment bank, is embracing generative AI (artificial intelligence) across its global operations, including its 9,000-strong workforce in India. In this exclusive interview with Business Standard, Chief Information Officer Marco Argenti discusses with Avik Das his strategic priorities, the evolving role of engineers, and why being people-first matters. Joining him, Gunjan Samtani, co-chairman and India head, talks of the future of the firm's engineering hubs in Bengaluru and Hyderabad. Edited excerpts… What are the three most important strategic priorities for you in the technology world?