Aston Martin will sell its Formula One team stake to help raise cash, as Lawrence Stroll's Yew Tree consortium prepares to hand the luxury carmaker another liquidity injection.

Stroll's consortium has invested roughly £600million in Aston Martin since 2020 as the carmaker has been dogged by weak demand, supply chain issues, delivery delays and more recently the threat of auto import tariffs in the US.

It announced last month it would cull 170 jobs as part of a cost-cutting plans, while delaying the roll out of its first battery electric vehicle for a second time.  

Aston Martin, which issued two profit warnings last year, told investors on Monday Yew Tree is hoping to buy another 75 million shares to raise £52.5million for the company.

Aston Martin said the share purchase, set at a 7 per cent premium to Friday's closing share price, would enhance liquidity and strengthen its balance sheet to provide additional headroom and support future investments.

It would see Yew Tree's Aston Martin stake grow from 27.67 to 33 per cent.

But the liquidity injection will be subject to regulatory exemption and the approval of independent shareholders if it is to bypass City rules requiring investors with a voting stake of more than 30 per cent to make a takeover offer.

Aston Martin said it would seek a waiver from the Panel on Takeovers and Mergers, as well as majority approval for Yew Tree to build a stake of up to 35 per cent at an upcoming general meeting.

'Benefiting from the growing success and popularity of Formula One', it is also hoping to sell its minority investment in the Aston Martin Aramco Formula One™ Team for £74million. Any sale will not affect sponsorship agreements.

The combination of the sale and Stroll's latest investment will provide Aston Martin with more than £125million of fresh liquidity.  

Stroll, who is also Aston Martin's executive chairman, said: 'This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders.'

Aston Martin shares soared 8.7 per cent to 70.9p in early trading. They have lost more than 34 per cent in 2025 and almost 90 per cent over the last five years.

The group also told shareholders on Monday it expects a 'significantly stronger' second half of its 2025 financial year compared with the first half.

However, it cautioned that the impact of additional US tariffs 'remains under review', and it now expects 'modest' volume growth compared to previous guidance of mid-since digit growth.

Chief executive Adrian Hallmark said: 'We are committed to demonstrating that our strategy delivers long-term growth. 

'By strengthening the balance sheet, this investment provides additional headroom to support our future product innovation and business transformation activities, which combined, will accelerate our progress into being a sustainably profitable company.'

Stroll added: 'I remain highly confident about the company's medium-term prospects having re-positioned the company as one of the most desirable ultra-luxury high performance automotive brands.

'The coming years will be pivotal in realising our vision and ambition. The company has invested significantly in its world-class portfolio of new core models, and Adrian Hallmark's appointment as CEO will further unlock the company's strong potential.'