Core Insights - Polestar has closed its last remaining direct store in China, located in Shanghai, as part of a strategic adjustment to better align with the rapidly changing consumer demands in the Chinese market [1][3] Group 1: Business Strategy - The company is shifting to an online sales model, although its online car purchasing system has been quietly closed, requiring consumers to make phone appointments for test drives [3] - Despite the closure of the Shanghai store, Polestar claims that other operations in China remain unaffected and that customer rights will not be compromised [3] Group 2: Store Expansion Plans - Polestar had ambitious plans to expand its store count in China from 55 by the end of 2023 to approximately 120 by the end of 2024, and over 180 by 2025, targeting major first- and second-tier cities [3] - However, the actual store count has drastically declined, with only one store remaining as of July, which subsequently closed two months later [3] Group 3: Sales Performance - Since entering the Chinese market in 2017, Polestar has struggled with unclear brand positioning, leading to declining sales: 2048 units in 2021, 1717 in 2022, and 1100 in 2023, with 1612 units sold in the first half of 2024 [5] - Sales data for August 2023 indicated that only 5 units of the Polestar 4 were sold, with other models showing no sales, leading to a total of fewer than 100 units sold in the first eight months of the year [5] Group 4: Product Positioning - Polestar's product pricing strategy has been inconsistent, with the first model, Polestar 1, priced at 1.45 million yuan, targeting the ultra-luxury segment, while subsequent models have varied widely in price [5] - The Polestar 2 was introduced at a starting price of 299,800 yuan, moving into the mainstream market, while the Polestar 3 returned to a higher price point of nearly 700,000 yuan [5]

Core Insights - Polestar has closed its last direct store in China, located in Shanghai, as part of a strategic adjustment to better align with the rapidly changing consumer demands in the Chinese market [2] - The company plans to shift to an online sales model, although its online car purchasing system has also been quietly closed, indicating a potential stagnation in sales [2][3] - Despite the closure, Polestar maintains that other business operations in China remain unaffected and that customer rights will not be compromised [2] Store Expansion Plans - Polestar had ambitious plans to expand its store count in China from 55 by the end of 2023 to approximately 120 by the end of 2024, and over 180 by 2025, targeting major first and second-tier cities [3] - However, the reality has diverged significantly from these plans, with the number of stores rapidly declining, culminating in the closure of the last store [3] Management Changes - The closure of the store coincides with a significant turnover in the management team in China, including the departure of several key personnel, such as the General Manager [3] Sales Performance - Polestar's sales in China have deteriorated since its entry in 2017, with annual sales figures dropping from 2048 units in 2021 to 1100 units in 2023, and only 1612 units sold in the first half of 2024 [4] - The sales figures for August 2023 indicate a severe decline, with only 5 units of the Polestar 4 sold, and overall sales for the first eight months of the year being less than 100 units [4] Brand Positioning Issues - Polestar's struggles are attributed to unclear brand positioning, with a wide price range for its products leading to confusion among consumers [4] - The company has shifted its pricing strategy multiple times, from a high-performance model priced at 1.45 million yuan to more mainstream offerings, and back to luxury pricing, which has contributed to its sales challenges [4]