Core Viewpoint - Polestar Automotive is facing significant challenges in the Chinese market, having closed its last direct store in Shanghai and reported extremely low sales figures, indicating a strategic shift in its business model to adapt to the rapidly changing consumer demands in China [2][3]. Sales Performance - Polestar's sales in China from 2021 to 2024 were 2048 units, 1717 units, 1100 units, and 1726 units respectively, with a drastic decline in 2025 where the monthly sales never exceeded 100 units [7][8]. - In the first nine months of 2025, Polestar's total sales in China were only 79 units [9]. Financial Performance - Polestar has accumulated a net loss of $59.68 billion over the past four and a half years, translating to over 425 billion RMB at current exchange rates [13]. - As of mid-2025, Polestar's total assets were $36.43 billion, while total liabilities reached $79.09 billion, resulting in a debt-to-asset ratio of 217%, indicating severe insolvency [14]. - The company's revenue from 2021 to 2024 was $13.37 billion, $24.62 billion, $23.68 billion, and $20.34 billion respectively, with net losses of $10.77 billion, $4.66 billion, $11.82 billion, and $20.5 billion [12]. Strategic Changes - Polestar has shifted to an online sales model following the closure of its Shanghai store, indicating a strategic adjustment to its operations in China [3]. - The company signed a termination agreement in April 2025 with its joint venture partner, Starry Meizu Group, to end their business operations in China, allowing Polestar to regain distribution rights in the Chinese market [10][9]. Recent Developments - In June 2023, Polestar announced a $200 million equity investment from PSD Investment Limited, controlled by Geely Holding Group's founder, to support its operational funding needs [13]. - Despite a 56.5% year-on-year increase in revenue in the first half of 2025, the net loss expanded to $11.93 billion, a 119.4% increase from the previous year, with a gross margin of -49.4% [12].
极星汽车4年半亏425亿负债率217% 国内9个月仅售79辆直营店全部关闭