Plans for Polestar's new headquarters in Gothenburg are hanging by a thread due to massive debts, according to media reports.
The electric car brand, under significant financial pressure, had announced ambitious plans to establish a new headquarters in central Gothenburg, but Swedish newspaper Dagens Nyheter (DN) now reports that the project’s future is highly uncertain.
About a year and a half ago, Polestar revealed plans to build an 80,000-square-meter facility on the banks of the Göta Älv, accommodating up to 3,000 employees.
The site was intended to serve as the global headquarters, housing everything from administrative offices to a design center. However, the project has since encountered serious financial and logistical challenges.
One of the primary obstacles is the lack of a business partner willing to own and lease the headquarters to Polestar, which is viewed as a financial risk due to the brand’s heavy debt load. This financial strain has led Polestar to cut its workforce.
Henrik Kant, Gothenburg’s city planning director, told DN that the project’s timeline has changed significantly.
"Initially, there was a clear schedule with tight deadlines. Then Polestar requested a delay as they search for a developer," Kant explained.
Despite these challenges, Polestar insists that it hasn’t abandoned the project, maintaining that the headquarters remain part of its long-term strategy. The brand expects to provide updates on the construction “at the beginning of the new year.”
Polestar’s new CEO, Michael Lohscheller, is set to present a strategic update on January 16, which the company states will also address the status of the Gothenburg headquarters.
As Polestar grapples with these financial challenges, the fate of the headquarters remains uncertain. The company may need to explore alternative solutions, even as it continues to expand its global reach, recently gaining investment from Indian stakeholders.
