The Swedish electric vehicle manufacturer Polestar has disclosed a $200 million equity investment from existing shareholder PSD Investment, which is managed by Eric Li, the founder and chairman of Geely Holding Group.
Under the agreement, Polestar will issue and sell more than 190 million new Class A American Depositary Shares (ADS) to PSD Investment at $1.05 per share. According to Electrive, this transaction raises PSD Investment’s ownership in Polestar to 44%, while Li Shufu, through PSD and a Swedish Geely subsidiary, now holds 66% of the company’s shares.
The $200 million deal has been arranged as a private equity investment in the company, commonly referred to as a PIPE.
Polestar plans to use the proceeds from the equity to support its working capital requirements and overall corporate activities. The automaker has struggled to boost vehicle demand amidst a slow-moving market and intense industry competition. As Reuters noted, it shares the financial pressures faced by many electric vehicle companies, prompting a need for additional capital.
The transaction further reinforces Geely’s strong control over Polestar. Following the capital raise, Volvo Cars Group—which is 79% owned by Geely—will trim its stake in Polestar from 18% to 16%.
Back in 2024, Volvo had already scaled down its ownership in Polestar from 48% to 18%, distributing those shares to its shareholders—most notably, its majority stakeholder, Geely.
In May, Polestar reported its first-quarter 2025 revenue of $608 million, marking an 84% surge compared to the $330 million recorded in Q1 of the previous year.
At the start of this month, the company broadened its international footprint by initiating electric vehicle sales in the French market.
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