Geely Holding denies reports of Polestar closure or restructuring

Geely Holding has denied reports suggesting that electric vehicle manufacturer Polestar is facing potential restructuring or closure. Stefan Lundin, Geely Holding’s European communications manager, stated there is no substance to claims that a “drastic announcement” is imminent, criticizing anonymous sources for spreading local rumors that do not reflect the reasoning at Geely’s headquarters in Hangzhou.

Despite the denial, Polestar continues to face significant financial challenges. The company has seen its stock price drop by approximately 97 percent since its 2022 listing, and its liquidity decreased from $1.16 billion at the start of the year to $676 million in the first quarter. Polestar has been actively working on its financing profile, having raised nearly $1 billion in external equity over the last nine months, alongside the conversion of $650 million in shareholder loans from Geely and Volvo Cars into equity.

Additional pressures include a sales halt in the United States due to restrictions on Chinese-linked software and vehicles, as well as lawsuits from American dealers. Polestar is scheduled to release its second-quarter and first-half 2026 financial results on September 3, 2026, which is expected to provide further clarity on its economic standing.