Swedish electric vehicle brand EV maker Polestar has announced a major funding milestone aimed at reinforcing its financial position. On February 2, 2026, the company confirmed it had secured $400 million in new equity funding, a move designed to strengthen its balance sheet and improve overall liquidity as it continues to scale operations globally.
Who Is Backing the Investment?
The fresh capital comes through Feathertop Funding Limited, an investment vehicle backed by two global banking giants—Sumitomo Mitsui Banking Corporation and Standard Chartered Bank. Each institution is contributing $200 million, with the transaction expected to close by February 5, 2026. Importantly, neither bank will own more than 10% of Polestar’s outstanding equity after the deal, ensuring balanced ownership.
Deal Structure and Share Pricing
As part of the agreement, investors will purchase Class A American Depositary Shares priced at $19.34 per share. This valuation mirrors Polestar’s December 2025 equity round, signaling confidence and pricing consistency. A strategic put option with majority shareholder Geely Sweden Holdings AB allows the banks a potential exit after three years, offering downside protection.
Financial Advisory and Governance
BofA Securities served as the exclusive financial advisor for the transaction, overseeing deal execution and structure. This further adds credibility to the funding round and reflects strong institutional backing for EV maker Polestar during a critical growth phase.
Strengthening the Balance Sheet Amid Challenges
This investment follows earlier efforts to ease financial pressure. In December 2025, EV maker Polestar raised $300 million in equity and secured a $600 million loan from Geely Holding. CEO Michael Lohscheller stated that combined funding initiatives are helping the company reinforce its balance sheet after achieving record retail sales in 2025.
Looking Ahead
Despite strong sales momentum, EV maker Polestar continues to face challenges, including negative operating margins and a high debt-to-equity ratio. The latest funding provides vital breathing room as the company works toward long-term profitability and stability in a competitive EV market.
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