Geely-owned Sweden-based electric vehicle maker Polestar has secured additional loan funding of up to $450m and renewed its green trade finance facility (TFF) to €480m to support its working capital requirements.
Polestar is expected to release its fourth-quarter (Q4) and full-year financial results along with its annual filing for fiscal 2024 in April.
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The company said a delay in reporting is due to the company’s efforts to strengthen its business in the face of declining demand and stiff competition.
US-listed shares of Polestar dropped by 2.7% in premarket trading following the announcement.
The company has found it challenging to increase demand for its electric vehicles (EVs), with a softer buying environment and strong competition impacting sales, reported Reuters.
Initially, Polestar had planned to release its fourth-quarter results in March, which was already a postponement from an earlier date.
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By GlobalDataThe latest delay is part of a pattern of financial disclosure issues for the company, which has had to correct previous statements and has faced several consecutive quarters of delayed reporting, leading to investor concerns about the firm’s accounting practices.
A continuous influx of capital is deemed essential for EV companies, where investment is needed to scale up production and enhance operations.
The EV sector has seen several startups, including EV truck maker Nikola, file for bankruptcy due to a lack of funding.
In January, Polestar announced the outcomes of a strategic review initiated by its new CEO, aimed at restructuring the business and moving closer to profitability.
As part of this review, the company had already secured over $800m in 12-month term facilities in December 2024, some of which was allocated for repaying existing loans.
Additionally, in January, the company revised its business strategy, setting a target of 30-35% compound annual retail sales volume growth from 2025 to 2027.
