Polestar (PSNY) Stock Jumps Nearly 10% After SEC Filings Reveal Geely Loan, BBVA Stake

TLDRs;

• Polestar shares jumped nearly 10% after SEC filings clarified financing and ownership details.
• A $600 million Geely-linked loan offers liquidity but carries potential dilution risk.
• BBVA disclosed an 8.4% stake with a three-year put option tied to Geely.
• Investors now await Q4 sales data to gauge demand momentum in 2026.

Polestar Automotive Holding (PSNY) shares surged nearly 10% in the final U.S. trading session of 2025 after fresh regulatory filings shed new light on the electric vehicle maker’s financing arrangements and ownership structure.

The disclosures, filed with the U.S. Securities and Exchange Commission (SEC), highlighted a sizable loan facility linked to Geely and confirmed a significant equity position held by Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA).

Polestar stock last traded around $21.37, up roughly 9.7% on the day, after swinging between $18.94 and $21.60. Trading volumes were modest at about 336,600 shares, reflecting thin year-end conditions. U.S. equity markets were closed on Thursday for the New Year’s Day holiday, amplifying the impact of company-specific news in a quiet tape.

Polestar Automotive Holding UK PLC, PSNY

Funding Clarity Lifts Sentiment

The rally comes at a time when Polestar remains under close investor scrutiny, particularly around liquidity and balance-sheet strength.

Electric vehicle demand has shown uneven momentum globally, and for capital-intensive manufacturers like Polestar, access to flexible funding can significantly influence market confidence.

The newly disclosed filings offered investors a clearer view of how capital could flow into the company and under what conditions. In an environment where dilution risk has weighed heavily on EV stocks, the transparency around financing mechanics appeared to ease some near-term concerns, at least temporarily.

Inside the Geely Loan Structure

A Schedule 13D amendment revealed that Polestar entered into a $600 million term loan facility with Geely Sweden Automotive Investment AB, an affiliate of its major shareholder Geely. According to the filing, $300 million of the facility is committed, while the remaining $300 million is uncommitted and subject to availability. Borrowings can be made until March 31, 2026.

Each draw under the facility matures six months after funding, unless Geely elects to convert the borrowed amounts into equity. The conversion price would be linked to the five-day average of Nasdaq closing prices prior to a formal conversion notice. This hybrid structure blends debt and equity features, potentially easing cash repayment pressure while also introducing the possibility of future share issuance.

BBVA Stake Draws Attention

Separate disclosures added another layer to the story. A Schedule 13G filing showed that BBVA holds approximately 7.76 million Class A American Depositary Shares (ADSs), representing about 8.4% of that share class. Each ADS corresponds to 30 Class A ordinary shares.

Importantly, the filing noted that BBVA has a put option agreement with Geely Sweden Automotive Investment AB, giving the bank the right to sell its ADSs to Geely under pre-agreed terms. For investors, this arrangement underscores the strategic role Geely continues to play in Polestar’s capital structure, while also signaling potential future shifts in share ownership.

Earlier in December, Polestar announced plans for a $300 million equity investment from BBVA and Natixis, alongside a proposal for Geely Sweden Holdings AB to convert roughly $300 million of existing Polestar debt and accrued interest into equity. At the time, CEO Michael Lohscheller said the transactions would materially strengthen the company’s liquidity position.

What Traders Are Watching Next

Despite the upbeat market reaction, questions remain about whether the late-December rally reflects a genuine reassessment of Polestar’s funding outlook or simply year-end positioning. The conversion features embedded in the loan and the put-option framework keep attention firmly on potential dilution, not just headline liquidity figures.

From a technical perspective, traders will be watching whether PSNY can hold above the $20 level when markets reopen, a threshold often viewed as a psychological support zone. A move back below Wednesday’s $18.94 low could undo the recent gains, while a break above $21.60 would mark a new near-term high.

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