Polestar Secures $550 Million in First External Funding Round

Polestar, the electric performance brand operating independently within Volvo Car Group, has successfully secured $550 million in its inaugural external investment round.

The funding was spearheaded by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding, and Zibo Hightech Industrial Investment.

Investor Participation and Future Fundraising

SK Inc., a prominent South Korean global conglomerate, was among the diverse group of investors who also contributed to this funding initiative.

Polestar indicated that this round is not anticipated to be its last, citing the expanding electric vehicle market and technological advancements that are enhancing the economic viability of EVs as key factors attracting further investment.

Ongoing discussions with global investors regarding potential additional fundraising are currently underway.

CEO Statement and Capital Allocation

“Our new investors clearly recognize Polestar’s unique position – a blend of established industrial strength, cutting-edge technology, and substantial growth potential as the automotive industry transitions to electric power,” stated Thomas Ingenlath, CEO of Polestar.

This new capital injection will broaden Polestar’s funding base and provide increased resources to expedite product development and enhance technological capabilities.

These advancements will support the launch of several innovative vehicles in the coming years.

Polestar’s Evolution and Current Offerings

Originally a high-performance division of Volvo Cars, Polestar was reimagined in 2017 as a dedicated electric performance brand.

The company aims to create electric vehicles that are both exhilarating and enjoyable to drive, a segment initially pioneered and dominated by Tesla.

Polestar is jointly owned by Volvo Car Group and Zhejiang Geely Holding of China, with Volvo having been acquired by Geely in 2010.

Expansion and New Vehicle Variants

Since its inception, Polestar has established a manufacturing facility in China and developed a global sales and distribution network.

The company has already launched two vehicles: the Polestar 1 and the all-electric Polestar 2.

This week, Polestar announced the addition of two new, more affordable versions of the Polestar 2 EV to its lineup.

New Polestar 2 Configurations

One new variant will be a single-motor Polestar 2, equipped with the same 78 kWh battery as the dual-motor model.

This configuration is projected to deliver an EPA-estimated range of approximately 260 miles.

The optional Plus Pack can extend this range by up to 10%.

The single-motor Polestar 2 is scheduled for release in North America by the end of 2021.

Polestar will also offer a more streamlined dual-motor version of the Polestar 2.

This dual-motor model boasts an estimated EPA range of 240 miles, which can be further increased with the addition of the new Plus Pack.

Commitment to Sustainability

Polestar has also declared its ambitious goal of producing the first climate-neutral car by 2030.

This achievement will not rely on carbon offsetting schemes, but rather on a fundamental transformation of the entire vehicle creation process.

Polestar intends to rethink every aspect of its supply chain, from material sourcing and manufacturing processes to enhancing vehicle energy efficiency.