Geely Chairman Li Shufu Invests $200M in Polestar Increasing Control to 66%

Polestar, the Swedish electric vehicle manufacturer, has secured a $200 million equity investment from PSD Investment Limited, an entity controlled by Geely Holding Group founder Eric Li, reinforcing Geely's dominant ownership stake which now totals around 66%. The funding, acquired through a private investment in public equity (PIPE) deal involving the issuance of over 190 million new Class A American Depositary Shares at $1.05 each, aims to bolster Polestar's working capital and general corporate purposes amid a challenging market environment including increased tariffs and competition. Despite strong product offerings like the Polestar 2, 3, and 4, the company reported a net loss of $190 million in early 2025 and has faced declining sales; Volvo Cars, once a significant shareholder, has fully transferred its Polestar shares to Geely. Polestar plans to expand production and market reach with new models such as the Polestar 5, 6, and 7, and operate in 28 global markets, while committing to ambitious sustainability goals including halving greenhouse gas emissions per vehicle by 2030 and achieving climate neutrality by 2040. Analyst sentiment on Polestar remains cautious, with an average underperform rating, though some forecasts indicate potential upside in stock value. The investment further solidifies Geely's strategic access to the premium electric vehicle market in Europe and North America.