Shares of electric vehicle (EV) maker Polestar (NASDAQ:PSNY) are trending on social media today. PSNY stock is retreating 5% after the company filed a mixed-shelf offering that will raise as much as $1 billion.
Several other EV startups have raised funds recently as they ramp up the production and deliveries of their automobiles.
In a document submitted to the Securities and Exchange Commission (SEC), Polestar reported that it would “offer ordinary shares, American Depositary Shares, preferred stock, warrants, rights, and units to raise up to $1 billion,” Seeking Alpha reported.
Polestar noted that the instruments could be sold in “any combination, together or separately” and “from time to time at prices and on terms to be determined at or prior to the time of one or more offering.” Polestar also reported that the warrants could be exchanged for PSNY stock.
PSNY Stock: What to Know About Polestar’s Background
Last quarter, Polestar’s deliveries soared 50% versus the same period a year earlier to a record level of about 13,900 EVs. In the first three quarters of the year, PSNY delivered 41,700 EVs. In conjunction with the news, the automaker’s CEO, Thomas Ingenlath, noted that the company expects its margins to climb in Q4 versus Q3.
Polestar reiterated its full-year delivery guidance of 60,000 to 70,000 EVs, as it expects to begin delivering EVs in China during the current quarter.
Other EV Startups Have Been Raising Funds
Polestar is not alone in this need for cash. On Oct. 6, Rivian (NASDAQ:RIVN) disclosed that it would sell $1.5 billion of green convertible bonds. Additionally, Fisker (NYSE:FSR) sold $170 million of convertible notes on Oct. 3. In June, Lucid (NASDAQ:LCID) carried out a private placement through which Saudi Arabia invested $1.8 billion in the automaker.
On the date of publication, Larry Ramer held a long positions in RIVN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
