Polestar secures investment to boost product development

Polestar has raised $500 million (£399m) of private investment, which will be used to accelerate the development of future models.

The Swedish electric performance car company said the newly issued shares mark the first time external investors have backed its products, brand, industrial capability, financial ambitions and high growth potential.

“Our new investors have recognised that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric,” explained Thomas Ingenlath, CEO of Polestar.

The group of investors is led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment. They have been joined by I Cube Capital, an arm of SK Inc., the South Korean global conglomerate, and a range of other investors.

Polestar said the new investment sets the stage for future growth by “diversifying its funding structure and deepening the resources available to accelerate its product development and technological capability ahead of the launch of several ground-breaking cars in coming years”.

The company is expected to launch its next model, the Polestar 3 SUV, in 2022. A saloon car, based on the Polestar Precept concept, will follow in 2023.

Polestar recently expanded the model line-up for its current model, the Polestar 2, adding new lower-priced versions.