TLDRs;
- Polestar’s stock climbed almost 10% following SEC filings that provided clarity on its financing and ownership specifics.
- A $600 million loan tied to Geely delivers liquidity but introduces potential dilution risk.
- BBVA revealed an 8.4% ownership stake alongside a three-year put option agreement linked to Geely.
- Investors are now awaiting Q4 sales figures to assess demand trends for 2026.
Shares of Polestar Automotive Holding (PSNY) rose by close to 10% during the final U.S. trading session of 2025, after fresh regulatory filings uncovered new details about the electric vehicle maker’s funding arrangements and ownership structure.
The disclosures—submitted to the U.S. Securities and Exchange Commission (SEC)—spotlighted a large loan facility associated with Geely and confirmed a substantial equity position held by Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA).
Polestar’s stock last traded at approximately $21.37, up roughly 9.7% on the day, after fluctuating between $18.94 and $21.60. Trading volumes were moderate at around 336,600 shares, reflecting slow year-end activity. U.S. equity markets were closed Thursday for the New Year’s Day holiday, amplifying the impact of company-specific news in a low-volume market.
Funding Clarity Lifts Sentiment
This rally comes at a time when Polestar remains under intense investor scrutiny, particularly regarding its liquidity and balance sheet strength.
Polestar has exhibited inconsistent momentum globally, and for capital-intensive manufacturers like it, access to flexible funding can significantly influence market confidence.
The newly disclosed filings offered investors a clearer view of how capital might flow into the company and the associated conditions. In an environment where dilution risk has weighed heavily on EV stocks, the transparency around financing mechanics appeared to ease some near-term concerns, at least temporarily.
Inside the Geely Loan Structure
A Schedule 13D amendment showed that Polestar entered into a $600 million term loan facility with Geely Sweden Automotive Investment AB, an affiliate of its major shareholder Geely. According to the filing, $300 million of the facility is committed, while the remaining $300 million is uncommitted and subject to availability. Borrowings can be made until March 31, 2026.
Each drawdown under the facility matures six months after funding, unless Geely elects to convert the borrowed amounts into equity. The conversion price would be linked to the five-day average of Nasdaq closing prices prior to a formal conversion notice. This hybrid structure blends debt and equity features, potentially easing cash repayment pressure while also introducing the possibility of future share issuance.
BBVA Stake Draws Attention
Separate disclosures added another layer to the story. A Schedule 13G filing indicated that BBVA holds approximately 7.76 million Class A American Depositary Shares (ADSs), representing about 8.4% of that share class. Each ADS corresponds to 30 Class A ordinary shares.
Importantly, the filing noted that BBVA has a put option agreement with Geely Sweden Automotive Investment AB, giving the bank the right to sell its ADSs to Geely under pre-agreed terms. For investors, this arrangement underscores the strategic role Geely continues to play in Polestar’s capital structure, while also signaling potential future shifts in share ownership.
Earlier in December, Polestar announced plans for a $300 million equity investment from BBVA and Natixis, alongside a proposal for Geely Sweden Holdings AB to convert roughly $300 million of existing Polestar debt and accrued interest into equity. At the time, CEO Michael Lohscheller said the transactions would materially strengthen the company’s liquidity position.
What Traders Are Watching Next
Despite the upbeat market reaction, questions remain about whether the late-December rally reflects a genuine reassessment of Polestar’s funding outlook or simply year-end positioning. The conversion features embedded in the loan and the put-option framework keep attention firmly on potential dilution, not just headline liquidity figures.
From a technical perspective, traders will be watching whether PSNY can hold above the $20 level when markets reopen—a threshold often viewed as a psychological support zone. A drop back below Wednesday’s $18.94 low could erase recent gains, while a break above $21.60 would mark a new near-term high.
