Polestar increases revenue – but losses rise sharply
When Polestar released its sales figures for the first half of 2025 in July, it was already clear that revenues must have climbed. From January to June, the brand delivered 30,319 cars – up 51 per cent on the same period last year.
The newly published financial results confirm the trend: revenue rose by 56.5 per cent to 1.42 billion US dollars. Polestar attributes the increase mainly to higher retail sales following its shift to an active sales model – since February, cars have not only been sold online but also through Volvo’s dealer network – as well as a more attractive line-up. The introduction of the higher-priced Polestar 3 and Polestar 4 in 2024 is now showing its full effect.
Polestar also generated $72 million from selling emissions certificates, driven by a new EU pooling agreement and US credit sales – a sharp contrast to just $40,000 in the same period last year.
Heavy loss due to Polestar 3 write-down
Despite this positive development, Polestar reported a net loss of 1.19 billion US dollars – up 119.4 per cent – with both operating losses and losses from vehicle production rising sharply. The company, part of the Geely Group, attributes this mainly to a one-off charge: a 739 million US dollar write-down on the Polestar 3.
The reason is weaker-than-expected performance of the Polestar 3. Management identified a decline in projected gross margin and short-term sales volumes for the SUV, leading to what the investor note calls “a decrease in the forecast lifecycle profitability of the vehicle.”
Contributing factors include higher distribution costs resulting from increased tariffs on imported components for US-assembled cars, as well as strong price pressure in the EV market, which significantly impacted profitability.
Higher distribution costs also stem from increased sales volumes, higher production costs for the Polestar 3 and Polestar 4, and additional tariffs – partly offset by lower material costs, including batteries.
Growing market presence
Polestar CEO Michael Lohscheller remains upbeat: “Our operational performance in the first half of 2025 reaffirms that we are doing the right things, in a difficult market: increasing our commercial footprint, selling more cars and relentlessly focusing on cost and inventory management.”
With an average of five new sales locations opening per month in the second quarter, Lohscheller said Polestar is making it ever easier for customers to experience and buy its vehicles. The launch of Polestar 5, our four-seat Grand Tourer, at IAA in September will strengthen our position as the leading performance EV brand.”
The company did not comment in its financial report on recent rumours that the Polestar 6 roadster had been postponed in favour of the Polestar 7 SUV. Instead, it confirmed that the Polestar 6 remains in the pipeline and that the Polestar 7 is scheduled for 2028. The Polestar 7 will be the first model built in Europe – at Volvo Cars’ future plant in Slovakia.
This article was first published by Sebastian Schaal for electrive’s German edition.
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