Polestar, the electric vehicle maker, announced today that it has secured a 12-month loan facility of up to $450 million. The company also delayed its fourth-quarter earnings report and annual filing for fiscal 2024 to April. The decision adds to its ongoing financial challenges, as it faces weak demand and fierce market competition.
The Sweden-based automaker, backed by China’s Geely, has struggled to gain traction in an increasingly competitive EV market. Following the loan announcement, Polestar’s U.S.-listed shares fell more than 2% in premarket trading.
The company initially planned to release its delayed fourth-quarter results in March but has now pushed the timeline even further.
Moreover, Polestar secured $800 million in loans over the past 12 months in December to repay older debts. However, the company has not clarified how it will use the new funds, raising concerns about its increasing debt burden.
Like many EV manufacturers, Polestar is navigating a tough market environment characterized by slowing consumer demand and price pressures from competitors. The loan signals a continued need for financial support as the company works to stabilize operations and maintain liquidity.
With its earnings delay and rising debt, Polestar faces mounting pressure to demonstrate a clear path to profitability in an industry that has become increasingly challenging for newer entrants.
