Polestar Announces $200M Funding From Geely Chairman's PSD Investments: Retail Sees Profitability 'Very Soon'

Shares of Swedish EV maker Polestar (PSNY) were in the spotlight on Monday after the company announced a $200 million equity investment by Geely Chairman's PSD Investment Limited.

PSD Investment is an existing investor of Polestar, which is majority-owned by China's Geely. PSD Investment is controlled by Shufu Li, Founder and Chairman of Geely Holding Group.

Polestar has agreed to sell over 190 million newly issued American Depositary Shares (ADSs) to PSD Investment for an aggregate price of $200 million through a private investment in public equity for $1.05 per ADS. The per-share price represents a near 2% premium to the stock's closing price on Friday.

Polestar said that it intends to use the proceeds for working capital requirements and general corporate purposes. As of the end of the first quarter, the company had a cash position of $732 million.

Last week, Reuters reported that Polestar is eyeing starting deliveries of its cars in France this year.

Stephane Le Guevel, managing director of Polestar France, told Reuters that the EV maker is looking to initiate deliveries in France to make it one of its three main European markets, along with Britain and Sweden.

Polestar last launched in new markets in 2022.

On Stocktwits, retail sentiment around Polestar stayed within the 'bearish' territory over the past 24 hours, coupled with 'low' message volume.

A Stocktwits user expressed optimism about the new investment.

Another opined that the company would be profitable“very soon.”

PSNY stock is down by about 3% this year but up by over 27% over the past 12 months.

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