It’s been no secret that iconic carmaker Aston Martin has been struggling.
After posting a $118 million loss in the first three quarters of 2019, the company warned its year-end profits would be down by half.
But the automaker announced Friday that it has a guardian angel. Lawrence Stroll, co-owner of the Racing Point Formula 1 team, will invest $239 million and take a 16.7% stake.
His consortium will add millions more by investing in a new issue of shares, effectively rescuing the company “from collapse.”
The industry had high hopes for Aston Martin’s first-ever SUV, the DBX, which has also yielded healthy orders. Some of the proceeds from the investment will help the carmaker ramp up DBX production.
Shares in London jumped 30% on the news, but have a long way to go. Aston Martin has lost nearly $4 billion in value since its Oct. 2018 IPO.