Polestar Automotive (NASDAQ:PSNY) saw its stock down more than 9% in premarket, as investors reacted to a new $1 billion fundraise.
The Sweden-based EV maker, which is among the cohort that aims to take market share from Tesla, gave investors little certainty over the form of fundraising in the work – as an SEC filing stated it may issue any combination of equity share classes, preferred stock, and/or warrants to raise the new capital.
Proceeds from the raise, if successful, are earmarked for "general corporate activities, including, but not limited to, working capital, capital expenditures, research and development and investments", Polestar said in the filing.
Earlier this month the company told investors it remains on track to meet its ambitious target of delivering between 60,000 to 70,000 vehicles by the end of 2023.
It expects the growing rollout to be supported by the launch of the Polestar 4 luxury crossover SUV into the Chinese market.
Reporting on its third-quarter deliveries, the EV maker said it shipped 13,900 units in the three-month period which marked a 50% year-on-year improvement.
Polestar reported about 41,700 deliveries for the first nine months of the year, reflecting growth of 37% from the same period last year.
The company is expected to release its 3Q financial report on November 8, 2023, after the market closes.
In New York today, Polestar stock was down 8.3%, trading at $2.66 each in premarket dealing.
Polestar is a spin-out of Swedish car maker Volvo, which is in turn owned by Chinese conglomerate Geely. Volvo retains a holding of just under 50% of the EV company.