Polestar breaks its own ceilings for investors. The brand is far from reaching a promised turnover of DKK 36 billion. Now the car brand itself is warning of a coming crisis.
Polestar is now warning itself that the car brand risks being thrown into a huge crisis. The car brand cannot maintain its own ceilings, and this is against the rules.
For the same reason, a huge loan of 950 million dollars – 6.4 billion Danish kroner – is about to be terminated.
Polestar cannot possibly reach the promised revenue of DKK 36 billion in 2024, which investors and lenders have been given the prospect of. After the first half of the year, turnover has reached just DKK 6.1 billion.
The DKK 6.4 billion is a bank loan, which in February this year ensured the operation of Polestar. But now it can all be canceled again. Only because Polestar cannot live up to the tremendous turnover. Something the car brand's management had otherwise promised.
READ ALSO: Sweden receives fierce criticism for selling diesel at DKK 11.
The many billion kroner comes from a total of 12 banks, all of which have been promised that Polestar will sell cars for 36 billion kroner this year. But that ceiling is more than difficult for the brand to live up to.
However, Polestar does not have to find the money for repayment itself. The parent group Geely must. The Chinese have provided a guarantee for the gigantic bank loan.
But the Polestar management knows very well that it looks bleak. In the car brand's latest accounts, the management directly warns that a breach of the loan terms can have a significant negative impact on both the financial situation, operations, ability to pay and the value of the brand's shares.
Polestar has previously received dispensation for, among other things, to break the rules when you submitted your accounts too late to the American stock exchange authorities. But the accounts show that the management cannot guarantee that the 12 banks are equally patient.
Whether the failing turnover is a direct reason for the dismissal of director Thomas Ingenlath is unknown. But last week it emerged that the German is resigning from his position. He is replaced by a marathon runner with a past as director of a number of scandal-ridden car brands. Read more about it here .
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