New Polestar Business Plan: Strategy and Funding Update!
Swedish electric car company, Polestar, has revealed a new plan to become profitable and stop needing extra money by 2025. Instead of focusing on selling lots of cars, they want to make more profit.
By 2025, Polestar hopes to make a profit of around 15% of their earnings and produce about 155,000 to 165,000 cars. They plan to achieve this by having four different car models such as Polestar 2, Polestar 3, Polestar 4,Polestar 5.
Also Polestar taking steps to improve profitability in the US market. They have already started saving money by reducing their workforce and keeping a close watch on their expenses. Polestar changing business plan, and will spend less money and make more profit, making Polestar stronger and more profitable.
To support Polestar, its owners, Geely and Volvo Cars, have provided additional funding. Volvo Cars extended the loan repayment deadline for Polestar and gave them an extra $200 million. Geely Sweden Automotive Investment AB is lending Polestar $250 million under similar terms to Volvo Cars. Both loans can be converted into shares if necessary.
Although Polestar will still need some extra funding, they are working with their owners to figure out how to obtain it. They may consider borrowing more money or attracting more investors to help them.