Polestar, the electric vehicle maker controlled by Volvo Cars and its parent, Zhejiang Geely Holding, seeks to raise millions in external funding.
The automaker is in advanced talks with investors to raise $800 million to $900 million, according to Reuters, while Bloomberg reported that the figure is at least $500 million. Both are attributing the information to people familiar with the matter.
A Europe-based Polestar spokesman reached by Automotive News Europe said the company doesn't comment on market speculation.
Polestar's first effort to raise funds outside of its parent company comes as the global auto industry continues investing in electric technologies after EV makers from Tesla to Nio report sustained sales growth.
Polestar is seeking a valuation of about $6 billion, Bloomberg was told by one of the people, who requested anonymity because the discussions are private. A funding round hasn’t been finalized, and terms could still change, the source said.
One of Reuters' sources said the investment would put Polestar's valuation at more than $5 billion, adding that the Sweden-based company is in final funding talks with Chinese investors including Beijing E-Town International Investment & Development.
Volvo CEO Hakan Samuelsson said last year that Volvo is seeking a valuation for Polestar that’s comparable with peers such as Tesla and Nio.
The funding will help Polestar expand production and its lineup, sources said.
Polestar started output in March of its first mass-market electric car, the Polestar 2, which is a rival to the Tesla Model 3. In September, the automaker said it would put another car, the Polestar Precept, into production.
Polestar CEO Thomas Ingenlath told Automotive News Europe last month said the Precept, which he said will be in development for another three years, is an indication to potential investors that the automaker is already looking eight to 10 years into the future.
"It is so important for people to understand what type of premium brand, what type of sporty brand we are aim to be," he said. "With Polestar Precept nobody will ask me anymore, 'Will you always stay that close to Volvo?' It's so clear that this is a car that you would not have within the Volvo brand."
Polestar has positioned itself as a rival to Tesla, currently the world’s No. 1 manufacturer of electric vehicles.