Polestar lands huge finance package as Polestar 3 production begins in China

Premium electric vehicle (EV) maker Polestar announced has landed a major financing package as it begin production of its much-anticipated Polestar 3 SUV in China.

The $US950 million ($A1.46 billion) funding package secured by Geely Sweden Holdings, the parent company, will support the rollout of the Polestar 3 and the Polestar 4 electric SUVs.

“It provides Polestar with the funds it requires to finance the next stage of its development,” Leo Thomas Ingenlath said in a statement. “We have reinforced our path towards cash flow break-even targeted in 2025.”

However, Polestar also confirmed that it will be cutting another 15 per cent of its workforce, adding to the 10 per cent cut this year, as it seeks more efficiencies in its road to profitability.

The company says sales of the Polestar 4 sales are accelerating around the world, and Polestar 3 has now started production in China and has also successfully completed test production runs in South Carolina, in the US.  A prototype production of thePolestar 5, a progressive performance GT, will also accelerate in 2024.

The Polestar 3 was officially unveiled in late-2022 with pricing debuting in early 2023 for China, the United States, and even Australia, where it should arrive later this year.

The Driven’s own Riz Akhtar also got a chance to lay his hands on the Polestar 3 last year, with the pricey Polestar 3 – which starts from $132,900 excluding on-road costs – certainly living up to its “premium” label.

Able to deliver a range of up to 610 kilometres (WLTP), both models are powered by a 111kWh battery pack, with optional Performance pack to boost power up to 380kW/910Nm.

For those Australians who have already put their name down for the Polestar 3, the good news is that production has gotten underway at the company’s production facility in Chengdu, China.

“This stunning car takes a significant step forward with start of production marking an important milestone on our journey from a one- to three-car company this year,”  Ingenlath said.