Polestar Automotive Holding is taking steps to raise more capital as the electric-vehicle maker struggles with an increasingly strained balance sheet and continued cash burn.
The company may seek to raise as much as $1 billion, according to a filing late Tuesday with the Securities and Exchange Commission. The move will allow Polestar to sell different types of shares gradually over a period of time.
Owned by Volvo Car AB and Chinese billionaire Li Shufu’s private investment company, the manufacturer has been struggling to gain market share due to software delays and competition from Chinese manufacturers that are selling battery-powered models at lower prices.
The company, which lost $304 million in the second quarter, said in August it’s funded through the end of the year and is working on options for the period after that. Its shares have dropped 45% this year amid worries over meeting deliveries.
Polestar cut its full-year deliveries target to as much as 70,000 units, from 80,000 previously. The company currently makes vehicles in China and plans to also produce at a plant shared with Volvo Car in South Carolina.
Last November, Polestar secured $1.6 billion in funding pledges from its two main shareholders, Volvo Car and Li’s PSD Investment Ltd.
The latest SEC filing should be seen as “standard practice” to give Polestar “flexibility to raise additional capital,” a spokesperson for the company said by email.
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