Latest news with #PSDInvestment
Yahoo
5 days ago
- Automotive
- Yahoo
Polestar secures $200m equity investment from PSD Investment
Geely-owned electric vehicle maker Polestar has announced a $200m equity investment from PSD Investment, an existing shareholder controlled by Eric Li, the founder and chairman of Geely Holding Group. Polestar Automotive Holding UK signed a securities purchase agreement to sell 190 million newly issued Class A American Depositary Shares (ADS) to PSD Investment. This $200m transaction is structured as a private investment in public equity (PIPE). The shares are priced at $1.05 each, reflecting the volume-weighted average closing price over the five trading days preceding the agreement. Before the PIPE transaction closes, PSD Investment plans to convert 20 million of its Class B ADS shares into Class A ADS shares. This move is aimed at ensuring that the total voting power of its Polestar holdings remains under 50%. Polestar plans to utilise the funds from this equity investment to meet working capital needs and for general corporate purposes. The Swedish automaker has encountered difficulties in increasing demand for its vehicles due to a sluggish market and fierce competition. Like many other electric vehicle manufacturers, it requires additional funding, reported Reuters. Although the automaker secured loans from various banks over the past year, further financial backing from Geely and Li Shufu, also known as Eric Li, has not been forthcoming until now. As part of the transaction, Volvo Cars will reduce its stake in Polestar from 18% to 16%. This decision follows Volvo Cars' move last year to decrease its investment and suspend financial support, responding to analyst concerns about the strain Polestar was placing on its resources, reported the media outlet. In May, Polestar reported Q1 2025 revenue of $608m, up 84% from $330m in the same period of last year. Earlier this month, Polestar expanded its market presence by launching electric vehicle sales in France. "Polestar secures $200m equity investment from PSD Investment" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Time of India
5 days ago
- Automotive
- Time of India
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.
TimesLIVE
5 days ago
- Automotive
- TimesLIVE
Polestar secures $200m investment from Geely's Li Shufu
Polestar said on Monday it had secured a $200m (R3,565,800,000) equity investment from major shareholder PSD Investment, a company controlled by Geely Holding founder Li Shufu. The Swedish EV maker will sell more than 190-million Class A American depositary shares (ADS) to PSD Investment, which will hold 44% of Polestar. After the transaction Li Shufu will hold a total of 66% in Polestar through PSD investment and the Swedish subsidiary of Geely. The Swedish carmaker 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 carmaker has received loans froms banks in the past year, further financial support from Geely and Li Shufu, also known as Eric Li, have not materialized. The transaction will also reduce Volvo Cars' stake in Polestar to 16% from 18%, after the Swedish carmaker 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 transaction is intended to provide working capital and fund general corporate purposes. The company said before 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%.
Reuters
6 days ago
- Automotive
- Reuters
Polestar secures $200 million funding from PSD Investment
June 16 (Reuters) - Polestar has secured a $200 million equity investment from its major shareholder and private debt fund PSD Investment, the Swedish electric vehicle maker said on Monday.
Business Wire
6 days ago
- Automotive
- Business Wire
Polestar announces USD 200 million equity investment
BUSINESS WIRE)--Polestar (Nasdaq: PSNY) announces a USD 200 million equity investment by PSD Investment Limited ('PSD Investment'), an existing investor, an entity that is controlled by Mr. Shufu (Eric) Li, Founder and Chairman of Geely Holding Group. Polestar Automotive Holding UK PLC ('Polestar') has entered into a securities purchase agreement pursuant to which Polestar agreed to sell newly issued 190,476,190 Class A American Depositary Shares ('ADS') to PSD Investment for an aggregate price of USD 200,000,000 through a private investment in public equity ('PIPE') at a price of $1.05 per Class A ADS, which represents the volume weighted average closing sale price for the previous five consecutive trading days prior to signing. Prior to closing of the PIPE, PSD Investment intends to convert 20,000,000 of its Class B ADS shares into Class A ADS shares in order to keep the overall voting power of its Polestar shareholdings below 50%. Polestar intends to use the proceeds from the equity investment for working capital requirements and general corporate purposes. About Polestar Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand with a focus on uncompromised design and innovation, and the ambition to accelerate the change towards a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 28 markets globally across North America, Europe and Asia Pacific. Polestar has three models in its line-up: Polestar 2, Polestar 3, and Polestar 4. Planned models include the Polestar 5 four-door GT (to be introduced in 2025), the Polestar 6 roadster and the Polestar 7 compact SUV. With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe. Polestar has an unwavering commitment to sustainability and has set an ambitious roadmap to reach its climate targets: halve greenhouse gas emissions by 2030 per-vehicle-sold and become climate-neutral across its value chain by 2040. Polestar's comprehensive sustainability strategy covers the four areas of Climate, Transparency, Circularity, and Inclusion. Forward-looking statements Certain statements in this press release ('Press Release') may be considered 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Polestar including the number of vehicle deliveries and gross margin. For example, projections of revenue, volumes, margins, cash flow break-even and other financial or operating metrics and statements regarding expectations of future needs for funding and plans related thereto are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expect', 'intend', 'will', 'estimate', 'anticipate', 'believe', 'predict', 'potential', 'forecast', 'plan', 'seek', 'future', 'propose' or 'continue', or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Polestar and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) Polestar's ability to enter into or maintain agreements or partnerships with its strategic partners, including Volvo Cars and Geely, original equipment manufacturers, vendors and technology providers; (2) Polestar's ability to maintain relationships with its existing suppliers, source new suppliers for its critical components and enter into longer term supply contracts and complete building out its supply chain; (3) Polestar's ability to raise additional funding; (4) Polestar's ability to successfully execute cost-cutting activities and strategic efficiency initiatives; (5) Polestar's estimates of expenses, profitability, gross margin, cash flow, and cash reserves; (6) Polestar's ability to continue to meet stock exchange listing standards; (7) changes in domestic and foreign business, market, financial, political and legal conditions; (8) demand for Polestar's vehicles or car sale volumes, revenue and margin development based on pricing, variant and market mix, cost reduction efficiencies, logistics and growing aftersales; (9) delays in the expected timelines for the development, design, manufacture, launch and financing of Polestar's vehicles and Polestar's reliance on a limited number of vehicle models to generate revenues; (10) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; (11) risks related to product recalls, regulatory fines and/or an unexpectedly high volume of warranty claims; (12) Polestar's reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to Polestar by its partners in order for Polestar to be able to increase its vehicle production volumes; (13) the ability of Polestar to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (14) risks related to future market adoption of Polestar's offerings; (15) risks related to Polestar's current distribution model and the evolution of its distribution model in the future; (16) the effects of competition and the high barriers to entry in the automotive industry and the pace and depth of electric vehicle adoption generally on Polestar's future business; (17) changes in regulatory requirements (including environmental laws and regulations and regulations related to connected vehicles), governmental incentives, tariffs and fuel and energy prices; (18) Polestar's reliance on the development of vehicle charging networks to provide charging solutions for its vehicles and its strategic partners for servicing its vehicles and their integrated software; (19) Polestar's ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from electric vehicle fires; (20) the outcome of any potential litigation, including litigation involving Polestar and Gores Guggenheim, Inc., government and regulatory proceedings, tax audits, investigations and inquiries; (21) Polestar's ability to continuously and rapidly innovate, develop and market new products; (22) the impact of the ongoing conflict between Ukraine and Russia and in Israel, the Gaza Strip and the Red Sea; and (23) the impact of the ongoing conflict between Ukraine and Russia and in Israel, the Gaza Strip and the Red Sea; and (24) other risks and uncertainties set forth in the sections entitled 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in Polestar's Form 20-F, and other documents filed, or to be filed, with the SEC by Polestar. There may be additional risks that Polestar presently does not know or that Polestar currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Polestar assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as may be required by law.
