Close Menu
  • Home
  • About
  • News
  • Awards
  • Media & Press
  • Video Podcasts
  • Magazines
  • Events
  • Contact
Facebook X (Twitter) Instagram
Gazet International – Global Magazine
AWARD NOMINATION
  • Home
  • About
  • News
  • Awards
  • Media & Press
  • Video Podcasts
  • Magazines
  • Events
  • Contact
You are at:Home » Polestar raises nearly $1 billion and sees margins improving in 2024
Business

Polestar raises nearly $1 billion and sees margins improving in 2024

l
Gazet InternationalBy Gazet InternationalFebruary 29, 2024Updated:January 27, 20253 Mins Read
Facebook Twitter LinkedIn
Share
Facebook Twitter LinkedIn

On Wednesday, Polestar announced securing a $950 million loan from a bank syndicate, filling a gap left by Volvo Cars’ decision to cease funding the electric carmaker. This development resulted in an 18.5% surge in its New York-listed shares.

Polestar

By the end of 2024, Polestar anticipates achieving double-digit gross profit margins, in contrast to a flat outcome expected in 2023.

Investors’ enthusiasm for EV manufacturers has waned as EV sales slowed and financial losses accumulated. This has made life especially difficult for startups. Price cuts by major players Tesla (TSLA.O) and BYD (002594.SZ) have exacerbated the pressure.

“It is crucial for us to be able to concentrate on rolling out our car programs, and it provides the funds needed to complete the model program that we have with Polestar 2,3 and 4 this year, and the 5 joining in 2025,” Thomas Ingenlath, Polestar’s chief executive officer, told.

Polestar differs from many pure-play EV startups in that it was founded by two strong financial backers: Volvo Cars (VOLCARb.ST) and Geely Holding (GEELY.UL).

However, it has continued to struggle, resulting in missed targets and job cuts.

At a critical time, Volvo announced earlier this month that it would stop funding Polestar and hand over the majority of its stake to its shareholders, including Geely. The additional funding comes as a response to this development.

Twelve international banks have provided Polestar with a three-year loan facility to aid the company in achieving cash flow break-even by 2025. In the auto industry, developing a single model can incur costs of up to $1 billion.

Polestar had previously declared that achieving break-even by 2025 would necessitate securing $1.3 billion in external funding.

Geely CEO Daniel Li, who is also a member of Polestar’s board, stated that the Chinese automaker will continue to support Polestar.

“Geely will continue to provide full operational and financial support to the iconic performance car brand going forward,” Li said in a Polestar statement.

“We will retain our shares in Polestar and intend to participate in future financing activities when required,” he went on to say. “Polestar will have full access to technologies and engineering expertise from Geely Holding to realize its global growth targets.”

Banks, including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB, extended Polestar’s loan.

Polestar projected volume growth for this year, anticipating that it would contribute to achieving its 2025 target of producing more than 155,000 vehicles annually.

“Volume and margin progression are expected to be weighted towards the second half of 2024, as the two SUVs reach full production and global distribution,” the company stated, referring to the Polestar 3 and 4 models, which will be available this year.

Click here for more Business news.

Source
#AUTOMAKERS #ELECTRICVEHICLES #EV #EVstartups #GAZETINTERNATIONAL #GI #GIAWARDS #margins #marketshares #TECHNOLOGY cars GEELY LuxuryCar POLESTAR VOLVO
Share. Facebook Twitter LinkedIn
Previous ArticleSoaring bitcoin set for largest monthly jump since 2020
Next Article Boeing has 90 days from the FAA to devise a plan addressing quality concerns

Related Posts

The European Union is increasingly looking to Oman for investment opportunities in green energy and water.

May 29, 2025

Dubai developer Binghatti will undertake a $7 billion master community project in the Meydan district.

May 29, 2025

Boubyan Bank, a Kuwaiti financial institution, has initiated the process for a new 5-year US dollar senior unsecured sukuk by issuing mandates.

May 29, 2025
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • LinkedIn
Don't Miss

Yango Group Expands ‘Points’ Loyalty Program to Abu Dhabi with Valuable Rewards for Rides

Intersec Saudi Arabia Returns with Record Exhibition Space Showcasing the Innovations Securing the Kingdom’s Future

Vidyut Jammwal Joins the Spykar Movement with the Launch of Chico Fit the Most Desirable Denim Fit Yet​

India’s First and Only Platform for the Entire Collections Ecosystem: Bharat Collection Summit & Awards 2025 Set to Redefine the Industry​

Recent Posts
  • Yango Group Expands ‘Points’ Loyalty Program to Abu Dhabi with Valuable Rewards for Rides
  • Intersec Saudi Arabia Returns with Record Exhibition Space Showcasing the Innovations Securing the Kingdom’s Future
  • Vidyut Jammwal Joins the Spykar Movement with the Launch of Chico Fit the Most Desirable Denim Fit Yet​
  • India’s First and Only Platform for the Entire Collections Ecosystem: Bharat Collection Summit & Awards 2025 Set to Redefine the Industry​
  • GLOW by Kirtilals Launches “Lil’ Dazzle”​
Recent Comments
    Archives
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • October 2023
    • September 2023
    • January 2021
    Categories
    • Banking
    • Blog
    • Business
    • Corporate
    • Editor's Column
    • Events
    • Executive Spotlight
    • Finance and Investing
    • Lifestyle
    • magazine
    • podcast
    • Press Release
    • Technology
    • World
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    About

    GAZET INTERNATIONAL


    Gazet International Magazine is a global entity that works towards providing latest information and news updates of the world. It entraps latest stories in banking, finance, lifestyle and various beats of the world. We engage in recognizing and rewarding the global organizations for their achievements in various fields and deliver justice to the nominees with valued identification and recognition of companies that indulge in the Gazet Award Ceremony.

    Facebook X (Twitter) Instagram YouTube LinkedIn
    Categories
    • Banking
    • Blog
    • Business
    • Corporate
    • Editor's Column
    • Events
    • Executive Spotlight
    • Finance and Investing
    • Lifestyle
    • magazine
    • podcast
    • Press Release
    • Technology
    • World
    Latest posts
    Press Release

    Yango Group Expands ‘Points’ Loyalty Program to Abu Dhabi with Valuable Rewards for Rides

    May 29, 2025
    Press Release

    Intersec Saudi Arabia Returns with Record Exhibition Space Showcasing the Innovations Securing the Kingdom’s Future

    May 29, 2025
    Press Release

    Vidyut Jammwal Joins the Spykar Movement with the Launch of Chico Fit the Most Desirable Denim Fit Yet​

    May 29, 2025
    Press Release

    India’s First and Only Platform for the Entire Collections Ecosystem: Bharat Collection Summit & Awards 2025 Set to Redefine the Industry​

    May 29, 2025
    1 2 3 … 771 Next
    Official Partner

    7ITS NEWS

    Copyright © 2025. Gazet International

    Type above and press Enter to search. Press Esc to cancel.