Electric car brand Polestar has been granted a US$600 million (A$900 million) loan from parent company Geely, just days before it closed its second and final research and development facility in the United Kingdom (UK).
According to Reuters, Geely – which also owns Lotus, Lynk & Co, Zeekr and a majority stake in Volvo – loaned Polestar the sum as a “shareholder loan”, meaning it does not count towards the struggling brand’s US$5.5 billion (A$8.25 billion) debt.
The full amount of the loan won’t be available immediately, with the second half to be released subject to Polestar’s future liquidity.
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In 2026, Polestar will launch an 800-volt version of its Polestar 3, while Australian showrooms will see the arrival of the Porsche Taycan-rivalling Polestar 5.
The Polestar 5 was developed in the UK, where the company closed its final research and development centre last Friday, December 19, 2025.
The closures cost 130 jobs and follow plans announced in early 2024 to cut 450 jobs from its 2100-strong global workforce.
Polestar secured a US$200 million (A$300 million) loan earlier this year from PSD Investment, a company run by Geely founder Li Shufu.
In November 2025, the Swedish brand reported a US$365 million (A$548 million) loss in the third quarter (July–September), on top of a US$1.03 billion (A$1.55 billion) loss in the previous quarter.
This came despite higher global sales, with year-to-date deliveries to the end of August 2025 up 36 per cent, from 32,595 to 44,482.
The larger losses were impacted by import tariffs introduced in the United States (US) in April 2025 – with subsequent changes creating ongoing uncertainty – as well as shifting emissions regulations.
“The result of Q3 has clearly been disappointing for us… we are continuing to suffer pricing pressure on our vehicles, in addition to having a higher cost of production due to the duties,” said Polestar finance chief Jean-Francois Mady on an earnings call.
Further challenging Polestar, in the United States the federal electric vehicle (EV) tax credit of US$7500 (A$11,256) and the US$4000 (A$6000) used EV incentive were axed in September.
The Australian federal government is also weighing up potential changes to EV incentives locally as it examines the Fringe Benefits Tax exemption for ‘fuel efficient vehicles’.
Polestar Australia’s year-to-date sales to the end of November stood at 2188, compared with 1536 at the same point in 2024.