Volvo’s sporty, electrical sub-brand receives a critical funding inflow to assist forge its future and introduce extra new fashions
Entrance quarter shot of a blue Polestar 6
The recently introduced Polestar 3 is the third model from Volvo’s sporty sub-brand and it’s first SUV, and it marks the beginning of a whole new-model offensive. A brand new mannequin will probably be launched yearly till 2026, together with a big sedan and a sports activities automotive. So as to have the ability to notice these bold plans within the coming years, Polestar has now obtained a capital injection of $1.6 billion from its two largest shareholders.
$1.6 Billion Greenback Funding Continues Polestar’s New Mannequin Marketing campaign
Entrance three-quarters shot of a Polestar 3
During recent quarterly earnings releases, Polestar CEO Thomas Ingenlath instructed analysts and traders Volvo had given its sporty sub-brand an $800 million, 18-month mortgage. The Swedish model had additionally obtained the identical quantity from its different major shareholder, PSD Funding Ltd., however it was each direct and oblique financing and liquidity help, he mentioned.
In response to Ingenlath, the extra capital will enable Polestar to concentrate on delivering extra automobiles to extra clients. CFO Johan Malmqvist added that Polestar had purchased itself time with the financing to develop a broader vary of long-term financing options sooner or later. This would be the case as quickly as situations on the capital markets enhance. So, plainly rising rates of interest and manufacturing prices will push the small brand with big ambitions to the sting of its liquidity limits, making it essential, in the meanwhile, to name on the help of its large companions. According to Reuters, start-ups such as Rivian and Canoo are also currently facing this problem.
Large Ambitions For The Future
Fron three-quarter shot of a white Polestar 3
In response to its personal figures, Polestar might ship 50,000 autos by the top of 2022, which might be virtually double that of 2021. The Swedish model expects even stronger progress within the subsequent two years when the model’s first SUV, the Polestar 3, rolls onto the highway in early 2023. In 2024, the model range will be expanded further with the Polestar 4, a smaller SUV with a coupe-like physique on the identical foundation. In all, Polestar hopes to promote round 290,000 autos by the center of the last decade after which, for the primary time in its nonetheless younger historical past, notice a revenue.
However this isn’t the top of the model’s product offensive. The launch of a large sedan, the Polestar 5, is already on the agenda for 2025, and the lineup is to be topped in 2026 with the Polestar 6 sports activities automotive. This mannequin is meant to be a Porsche competitor, which makes it clear the place the model needs to go sooner or later.