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StocksMedium•31 March 2026•

1 min read

Polestar Restructures Capital with $600M Debt-to-Equity Swap and US Production Shift

Key Facts

1Volvo Cars agreed to convert approximately $274 million of its outstanding shareholder loan into Polestar's equity.

2Geely Sweden Holdings AB completed a previously announced debt-to-equity conversion of approximately $300 million.

3Volvo Cars is expected to carry out a second debt-to-equity conversion totaling approximately $65 million in Q2 2026.

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1 additional source confirmed this story

Polestar is undergoing a significant capital restructuring as its major shareholders, Volvo Cars and Geely, convert over $600 million of debt into equity. Volvo Cars has agreed to convert approximately $274 million of its shareholder loan, while Geely Sweden Holdings has finalized a $300 million conversion. An additional $65 million debt-to-equity swap by Volvo is scheduled for the second quarter of 2026. These financial maneuvers are designed to strengthen Polestar's balance sheet and reduce its long-term debt obligations. Simultaneously, the company is consolidating the production of its Polestar 3 model at Volvo’s manufacturing facility in South Carolina. This strategic shift aims to streamline logistics and enhance operational efficiency within the North American electric vehicle market.