Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 142

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 5
Chunk 142
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 it does not have sales units (e. g., Hong Kong, New Zealand, the United Arab Emirates (UAE), Israel, Kuwait and Iceland).

•Sales to associate: In China, Polestar sold its vehicles to its equity method investment, Polestar Times Technology (Nanjing) Co., Ltd ("Polestar Times Technology"). Vehicles are sold to Polestar Times Technology at wholesale prices and Polestar Times Technology subsequently sold the vehicles to customers in China. In April 2025, Polestar signed an agreement to terminate the business Polestar Times Technology. See Item 4B "Information on the Company - Business Overview - Sales and distribution s" for further details.

In 2024, as part of its plans to increase sales volumes, Polestar began to transition its direct-to-customer model to an active selling partner set-up, known as a 'non-genuine agency model', and, in time, is also planning to add wholesale-dealer capabilities, with small and medium-size enterprises being the focus partners, to eventually implement a dual model approach. This approach is expected to enable rapid retail network expansion and customer reach in a capital-efficient manner. In the USA, Polestar is enhancing the dealer-focused wholesale model by incorporating a genuine digital buying capability.

Polestar’s new market expansion is focused on France, with sales expected to start in 2025 and additional expansion, across Eastern Europe, Asia, and Latin America, is planned from 2026 onwards. Additionally, Polestar plans to expand its retail spaces from 70 to 130 in Europe and from 36 to 57 in North America.

Earn-out rights and Class C Shares from the reverse recapitalization

On June 23, 2022, Polestar consummated a capital reorganization via the merger with GGI, a special purpose acquisition company. Polestar subsequently began trading in the U. S. on Nasdaq on June 24, 2022 under the ticker symbol “ PSNY.” In addition to providing Polestar with access to new funding sources in the United States capital markets, the merger, including all related arrangements, raised net cash proceeds of $1,418 million. Gross proceeds of $638.2 million was assumed from GGI, $250 million was sourced from a private placement in public equity (“ PIPE”), and $588.8 million was sourced from a preferential share subscription with Volvo Cars. Total transaction costs of $98 million were incurred in connection with the merger, of which $59.1 million had been recognized