EV maker Polestar looking for new funds after first-half sales jump 125%

ELECTRIC-VEHICLE (EV) maker Polestar Automotive Holding is weighing a range of options to finance its expansion after sales more than doubled in the first half of this year.

The Swedish company, which listed in New York in June, delivered 21,200 cars in the first 6 months of 2022, a 125 per cent increase from the same period last year, the EV maker said on Wednesday (Jul 13) in a statement.

Polestar has faced criticism in recent weeks that it doesn't have sufficient funds to cover cash requirements for 2022. The company is considering traditional bank loans, bonds, equity or equity-linked instruments to meet its cash needs over the next few years, a spokesperson said.

"The company's funding until the time-frame of 2025 is very transparent," Polestar chief executive officer Thomas Ingenlath said in an interview. There is "a very clear funding need" beyond the US$890 million raised through the merger with special purpose acquisition company Gores Guggenheim, he said.

Since going public, Polestar's shares have fallen more than 25 per cent as investors' appetite for startups wanes in the face of record inflation, rising interest rates and a worsening economic outlook. A spin-off of Volvo Car, Polestar may need to seek the additional funding from the Swedish carmaker or its main investor, Zhejiang Geely Holding Group, analysts at Bernstein said in a note last month.

Polestar said its global order intake rose to more than 50,000 since the start of 2022 - a 350 per cent increase from the same period last year. Ingenlath said he expects to sell out in some markets and reiterated his target of reaching 290,000 EV sales in 2025.

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"There is certainly not a problem on the demand side," the CEO said. "It's all about now delivering these cars and getting them out of the factory."

Polestar plans to open another 30 retail locations by the end of the year, bringing its tally to 155.

In October, Polestar will enter the SUV segment with the launch of Polestar 3. In a separate statement, Ingenlath said the new car "represents the expansion of our manufacturing footprint into the United States as we become even more global". BLOOMBERG