Electric vehicle maker Polestar has secured a major financial boost with a fresh $200 million investment from Li Shufu, founder of China’s Geely Group. The deal was made through his personal investment arm, PSD Investment, reaffirming strong backing from within the Geely ecosystem.
What the Investment Involves
Li Shufu’s PSD Investment purchased 190 million new Polestar shares at $1.05 each. As part of the deal, PSD also converted its B-class shares into A-class shares, ensuring voting rights remain below 50%—a move seen as maintaining corporate balance while still signaling deep confidence in Polestar’s future.
This brings PSD’s total ownership stake to approximately 39%, while Geely Sweden Holdings owns about 24%. Former key stakeholder Volvo Cars has reduced its stake to around 18%, highlighting a shift in governance and funding dynamics within the Polestar parent structure.
Why It Matters
This investment comes at a critical time for Polestar. The company recently paused its full-year 2025 financial guidance due to market uncertainties, despite rising revenues and improved cost-cutting measures. The $200 million injection provides financial runway for ongoing operations and the global rollout of its newest EV models including the Polestar 3 and Polestar 4.
Industry analysts view this funding as a vote of confidence from the Geely network and a strategic move to stabilize the EV maker’s path toward profitability.
Polestar’s Path Forward
With this new capital, Polestar plans to:
- Accelerate production and delivery of upcoming models.
- Strengthen global retail and service networks.
- Continue cost optimization and work toward its break-even goal by 2025.
Additionally, the investment further integrates Polestar into the broader Geely ecosystem, allowing it access to shared R&D resources, supply chain efficiencies, and manufacturing capabilities.
Market Response
Following the announcement, investor sentiment toward Polestar improved, especially among long-term backers who see the move as a sign of stability amid global EV market turbulence. The company’s leadership reiterated its commitment to sustainability, innovation, and premium EV design.
Final Thoughts
Polestar’s $200 million funding round from Li Shufu is more than a capital injection—it’s a strategic move that tightens the brand’s ties with its founding ecosystem while equipping it to compete in a rapidly changing electric vehicle market. With new models on the horizon and renewed financial support, Polestar appears well-positioned to steer through current challenges and drive growth into 2026 and beyond.
