Polestar Automotive Holding UK Limited (NASDAQ:PSNY) shares are trading higher Wednesday after the company announced that it secured $950 million in external funding.
The Details:
Polestar Automotive said the financing is being provided by 12 international banks in the form of a three-year loan facility. Polestar said it provides the company with the funds it requires to finance the next stage of its development and covers a large majority of its estimated financing needs.
The company is also enacting a comprehensive efficiency program with a 10% workforce reduction since mid-2023 and another 15% workforce reduction to follow in 2024.
“Securing funding from a syndicate of global banks reflects our partners’ support for Polestar’s growth course. Together with Geely’s full financial support and access to innovative technology and engineering expertise, we have reinforced our path towards cash flow break-even targeted in 2025,” said Thomas Ingenlath, Polestar CEO.
Polestar Automotive is set to report its fourth-quarter financial results before the market open Thursday and will host a conference call at 8:00 a.m. ET to discuss the results. According to estimates from Benzinga Pro, the company is expected to report losses of 15 cents per share and quarterly revenue of $756.514 million.
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PSNY Price Action: According to Benzinga Pro, Polestar Automotive shares are up 19.5% at $1.78 at the time of publication.
Image: Pete Linforth from Pixabay
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