Geely-Backed Polestar Announces $400 Million In Funding Via Special Purpose Vehicle

Geely Automobile Holdings Ltd.-backed (OTC:GELYF) (OTC:GELHY) Polestar Automotive Holding UK PLC (NASDAQ:PSNY) has secured over $400 million in funding through a Special Purpose Vehicle (SPV).

Sumimoto Mitsui, Standard Chartered Funded Polestar

The Swedish automaker, in an official statement on Monday, announced that Sumimoto Mitsui Banking Corp., as well as Standard Chartered Bank Ltd. (Hong Kong), invested $200 million each via Feathertop Funding Ltd., a special purpose vehicle.

Both institutions will purchase Class A American Depositary Shares at $19.34 per share, the automaker announced. The agreement could boost Polestar's financial health.

Polestar says that the financial institutions have entered into a put option agreement, an agreement that allows the holder the right, but not an obligation, to sell shares within a certain amount of time. The agreement, Polestar says, will allow both Sumimoto and Standard Chartered to sell off the stake "in three years with certain returns."

Polestar CEO Michael Lohscheller hailed the agreement in the statement. "We continue to make progress on enhancing our liquidity position and strengthening our balance sheet," he said. Polestar maintained that neither financial institution "will own more than 10% of Polestar's outstanding equity."

The automaker had earlier announced in December 2025 that it had secured a $300 million financing agreement from Spain's Banco Bilbao Vizcaya Argentaria (BBVA), as well as French investment bank Natixis.

Geely To Enter US?

The news comes as Geely was mulling a possible entry into the U.S. market, with the company's Head of Global Communications, Ash Sutcliffe, sharing that such a move could happen in the next 2-3 years. The automaker has a production facility in South Carolina.

Zeekr, one of Geely's subsidiaries, also collaborated with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) to produce "Ojai" Robotaxis for Waymo. However, it's worth noting that an Ojai Robotaxi, being driven by a human, undergoing testing in Los Angeles, recently crashed into several parked vehicles.

Polestar scores poorly on the Momentum metric and offers an unfavorable price trend in the Short, Medium, and Long term. 

Price Action: PSNY surged 2.51% to $15.51 during Pre-market trading on Monday.

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