Polestar Automotive Holding UK PLC stock is back in traders’ headlights on Tuesday, December 23, 2025, after the company confirmed it closed a roughly $300 million funding transaction tied to European investment banks BBVA and Natixis—a rare “fresh cash in the door” moment for an EV maker that has spent much of 2025 battling liquidity anxiety. [1]
In U.S. trading on Dec. 23, PSNY changed hands around $15.37 with an intraday range of roughly $13.97–$15.60, extending a sharp multi-day move following last week’s financing announcements.
That price action is the headline. The story underneath it is more complicated—and more interesting: this isn’t just a simple equity raise. It’s a three-part liquidity package built around (1) a bank-led equity investment that just closed, (2) a Geely-backed debt-to-equity conversion that still needs regulatory clearance, and (3) a Geely-backed term loan facility that can expand to $600 million and can itself convert into equity. [2]
What happened on Dec. 23: Polestar confirms the $300 million equity funding is in
Polestar disclosed that it received $299.999991 million in funding from Banco Bilbao Vizcaya Argentaria (BBVA) and Natixis, and that the transaction closed on December 23, 2025. [3]
This closing matters because it turns last week’s announcement into something markets can actually count: cash received, not cash “expected.”
The deal structure: $300 million equity today, with an engineered exit for the banks later
The equity investment was originally announced on Dec. 19, 2025 and is structured as a PIPE (private investment in public equity) into Polestar’s publicly traded U.S. listing.
Key terms disclosed in Polestar’s SEC filing:
- Polestar agreed to sell 15,511,892 Class A ADSs for $300,000,000 total. [4]
- The price per ADS is $19.34, which Polestar described as equal to the three-month volume‑weighted average price (VWAP) preceding the definitive agreement date, rounded up. [5]
- No single purchaser is expected to own more than 10% of Polestar’s outstanding equity after closing. [6]
Then comes the unusual part: the “exit path.” Concurrent with the PIPE, each bank entered into a three‑year put option arrangement with Geely Sweden Automotive Investment AB (GSAI) (a Geely Sweden subsidiary), with the obligations guaranteed by Geely Sweden Holdings AB. Polestar itself is not a party to the put options, but the existence of this structure is central to how the financing works. [7]
In plain English: the banks are putting cash into PSNY now, but they also have a defined mechanism to potentially sell those shares to a Geely affiliate later (with conditions and a pre‑determined price framework described in the filing). [8]
For Polestar stock investors, that’s a double-edged sword:
- It makes the financing more feasible (banks like engineered exits).
- It increases the probability that Geely’s influence/ownership grows further over time, depending on how those options are ultimately used. [9]
The other half of the balance-sheet punch: Geely to convert about $300 million of debt into equity
Alongside the closed bank equity funding, Polestar disclosed that GSAI agreed to convert approximately $300 million of outstanding principal and interest owed under an existing term facility into equity, subject to any necessary regulatory approvals. [10]
This is not just “more money.” It’s a structural change: converting debt to equity can reduce leverage and interest burden, but it also increases the share count (dilution) and can shift control dynamics depending on the final issuance terms and timing. [11]
Why the market cares: it’s a liquidity package during a cash-crunch narrative
Polestar hasn’t been fighting for vibes; it’s been fighting for runway.
Reuters reported earlier this month that Polestar secured a shareholder loan of up to $600 million from its majority owner Geely, describing Polestar’s situation as a cash crunch amid a broader EV demand slowdown and ongoing financial struggles. [12]
That’s the context in which traders are reading today’s “funding closed” headline: not as a growth celebration, but as survival math.
The Geely term loan facility: up to $600 million, with conversion features and subordination
On Dec. 16, 2025, Polestar entered into a credit agreement for a $600 million term loan facility with GSAI as lender and agent. The SEC filing adds important color that gets lost in quick headlines:
- The first $300 million is committed; the second $300 million is uncommitted and requires lender consent. [13]
- The facility is available for utilization until March 31, 2026. [14]
- Each draw is generally repayable on a “Termination Date” falling six months after the utilization date, unless the lender exercises a conversion option to turn all or part of the loan plus accrued interest into Polestar shares at a conversion price based on recent Nasdaq closing prices (as specified in the filing). [15]
- The interest rate is Term SOFR + 3.00% (with a zero floor as described in the document). [16]
- The term loan is subordinated to Polestar’s club loan facilities (the filing references EUR 340 million and USD 583.489 million multicurrency green term loans), and repayment is tied to consent mechanics related to that subordination. [17]
If you’re watching PSNY as a stock (not just as a brand), this matters because it sketches the near‑term playbook:
Polestar can buy time with related‑party capital from Geely—either as debt, equity, or debt that later becomes equity.
That’s supportive in the short term… and potentially dilutive over the medium term.
The reverse split and ADS ratio change: why PSNY’s chart looks “weird” in late 2025
A major reason Polestar stock feels like it “teleported” into the teens is that it effectively did—mechanically.
Nasdaq corporate action notices show Polestar executed a 1‑for‑30 reverse split / ADS ratio change, shifting the ADS ratio from 1:1 to 1:30, effective Tuesday, Dec. 9, 2025 (with CUSIP changes alongside it). [18]
Reuters previously reported Polestar announced the one‑for‑thirty reverse stock split as it sought to avoid Nasdaq delisting after receiving notice for failing to maintain a minimum bid price. [19]
Reverse splits don’t change a company’s underlying value by magic. They primarily:
- reduce the share count per investor,
- increase the per‑share price proportionally,
- and (sometimes) buy time for listing compliance. [20]
The practical investor takeaway: when you compare “before vs. after” prices or price targets, always confirm whether the data has been split‑adjusted—many feeds take time to normalize.
Polestar’s operating backdrop: growth efforts, but profitability still the hard boss fight
Polestar’s late‑2025 financing headlines sit on top of a year defined by two competing realities:
Reality A: the company has pushed growth levers.
In April, Polestar said it was seeing momentum in transforming commercial operations and expected product mix shifts to support margin improvement, while still targeting 30–35% compound annual retail sales volume growth for 2025–2027 (a long‑range target, not a guarantee). [21]
Reality B: the company has also faced tariff uncertainty, cost pressure, and liquidity strain.
Polestar paused 2025 financial guidance earlier this year amid uncertainty around international tariffs and government regulations. [22]
Meanwhile, Reuters’ reporting around the reverse split noted pricing pressures, higher production costs linked to tariff-driven uncertainty, and a strategic tilt toward Europe as Polestar tries to offset weak U.S. demand. [23]
And cost discipline has not been theoretical. Business Insider reported Polestar closed two UK R&D facilities and laid off staff as part of a broader push toward a leaner structure. [24]
Put together, this is why PSNY trades like a “news-reactor”: liquidity events matter because they shape whether the company can keep executing the product strategy long enough for margins to catch up.
Analyst forecasts and price targets for PSNY: handle with care, especially post-split
If you scan popular market pages today, you’ll see price targets that can look oddly “clean” (for example, some feeds show targets around $30). [25]
Two important cautions for readers trying to use analyst targets as a compass:
- Coverage is limited. EV challengers with volatile finances often have thinner sell‑side coverage than mega-caps, and targets can swing wildly with capital structure changes.
- Reverse splits can distort perception. Targets and historical prices need to be adjusted consistently. A target that looks like a massive upside move can sometimes be a mechanical artifact of the split rather than a fresh wave of bullishness.
What’s more useful than obsessing over a single target number is watching the variables analysts tend to care about for Polestar:
- liquidity runway and access to capital,
- delivery trajectory by region (especially Europe vs. North America),
- gross margin trend and cost reductions,
- and the degree of dilution implied by new financing and potential debt conversions. [26]
What investors should watch next after today’s funding close
With the $300 million equity funding now closed, the next “known unknowns” are fairly specific—and they’re the kind of specifics the market loves because they’re measurable.
1) Timing and completion of the ~$300 million debt-to-equity conversion
Polestar said the conversion is expected after receiving necessary regulatory approvals. The moment that conversion finalizes, investors will focus on the exact equity impact and any updated ownership disclosures. [27]
2) Whether Polestar taps the additional $300 million of the Geely facility
Only the first $300 million is committed; the second $300 million requires consent. If Polestar draws more, it’s a sign liquidity needs remain intense. If it doesn’t, that can be interpreted as either improved stability or simply a different funding route. [28]
3) Conversion risk embedded in the term loan
The term loan includes the possibility that debt and interest convert into equity based on a formula tied to recent trading prices. That can reduce repayment pressure, but it can also add dilution—particularly if the share price is weak at conversion time. [29]
4) Any update to forward guidance (or continued refusal to guide)
Polestar paused 2025 financial guidance earlier this year due to tariff and regulatory uncertainty. Any move to reintroduce guidance—or to continue withholding it—will shape sentiment about predictability and control. [30]
5) Nasdaq compliance narrative stays in the background
The reverse split/ADS ratio change addressed the bid-price mechanics, but the broader question remains: can the business fundamentals stabilize enough that listing compliance isn’t a recurring annual horror story? [31]
Bottom line on Polestar stock on Dec. 23, 2025
Today’s PSNY move is fundamentally a liquidity story: Polestar confirmed it closed a $300 million funding transaction with BBVA and Natixis, adding tangible financial oxygen right now. [32]
But the larger narrative is still a balancing act:
- Bull case (near term): liquidity improves, Geely support reduces immediate default anxiety, and the stock can re-rate off “less imminent doom.” [33]
- Bear case (medium term): the support comes with strings—dilution pathways (PIPE shares, debt conversion, loan conversion mechanics) and a business that still has to prove sustainable margins in a hyper-competitive EV market. [34]
In other words: today is a win for runway. Whether it becomes a win for long-term shareholders depends on execution in 2026—and on how much of the capital structure ends up being reshaped along the way. [35]
References
1. www.marketscreener.com, 2. www.marketscreener.com, 3. www.marketscreener.com, 4. www.sec.gov, 5. www.sec.gov, 6. www.sec.gov, 7. www.sec.gov, 8. www.sec.gov, 9. www.sec.gov, 10. www.sec.gov, 11. www.sec.gov, 12. www.reuters.com, 13. www.sec.gov, 14. www.sec.gov, 15. www.sec.gov, 16. www.sec.gov, 17. www.sec.gov, 18. www.nasdaqtrader.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.sec.gov, 22. www.sec.gov, 23. www.reuters.com, 24. www.businessinsider.com, 25. www.marketwatch.com, 26. www.sec.gov, 27. www.sec.gov, 28. www.sec.gov, 29. www.sec.gov, 30. www.sec.gov, 31. www.reuters.com, 32. www.marketscreener.com, 33. www.reuters.com, 34. www.sec.gov, 35. www.sec.gov
