Polestar secures more funds amid cash drain and as it delays financial report

Swedish based electric carmaker Polestar has secured a large financing facility to help prop up declining working capital, but has once again delayed publishing its most recent financials.

Polestar, which is jointly owned by Geely Holding and Volvo Cars, which is itself majority owned by Geely, announced in a short statement that it had secured a 12-month term facility of up to $US450 million ($A725 million, converted).

This comes after the company secured a further $US800 million in 12-month term facilities in December and announced in January that it had delayed the release of its results.

Approximately a quarter of the $US800 million is to be used to repay other loans, with the remainder being put towards the company’s working capital needs moving forward.

Polestar also revealed that it had renewed Green Trade Finance Facility (TFF) it entered into with a syndicate of leading global banks back in February 2022. The TFF was renewed for €480 million.

The extra capital is expected to support the company’s ongoing efforts to bolster its business amidst lacklustre demand for its EVs, despite the rollout of a number of new models such as the Polestar 3, the Polestar 4 and imminently, the Polestar 5.

Polestar also announced that it was once again delaying the release of its fourth quarter and full-year 2024 financial results to an unspecified date in April.

While Polestar has committed to publishing its global retail sales volumes for the first quarter of 2025 on April 10, the company is once again pushing back the release of its 2024 financial results, having already delayed them until March.

The Swedish company was slow in publishing its 2023 fourth-quarter and full-year financial results as well and has also had to recently republish statements from past financial years to address errors.