Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [12][10] - Revenue increased by 56% to $1.4 billion, driven by higher sales volume and a growing share of higher-priced models [15][10] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [16][10] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [17][10] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of retail sales volume [12] - Carbon credit sales amounted to $90 million, contributing positively to profitability [15][16] - The sales mix shifted towards more Polestar 2 cars, impacting the overall gross margin negatively [25][26] Market Data and Key Metrics Changes - Strong performance noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [13][14] - Europe is now the main regional market, with 77% of sales coming from this region [49] Company Strategy and Development Direction - The company is focused on an active selling model, enhancing operational efficiency, and improving cash position [9][10] - Plans to launch Polestar 5, which is expected to shape the brand's identity and compete with legacy performance brands [8][10] - The company aims to manufacture Polestar 7 in Slovakia, marking a significant milestone in European manufacturing [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [12][19] - Despite challenges, the company expects to continue growing year-on-year in line with set growth targets [13][21] - The demand for BEVs is still growing, particularly in Europe, although there are shifts towards lower-priced models [24] Other Important Information - The company raised $200 million in new equity and secured approximately $1 billion in new loan facilities [19][20] - Cash position at the end of June was $719 million, with a focus on improving working capital management [20][39] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, especially in Europe, but there is a trend towards lower-priced models [24] - The margin decline was attributed to a negative sales mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes [31] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [32][34] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and discussed ongoing improvements in working capital management [39][40] Question: U.S. market strategy post-EV tax credit - Management highlighted that the U.S. market represents about 8% of sales and emphasized the need to balance volume and profitability [49][50]

Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [11][12] - Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and a growing share of higher-priced models [13] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [14][15] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [15] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of total sales volume [11] - Carbon credit sales amounted to $90 million, contributing positively to profitability [13][15] - The company has implemented an active selling model, increasing the number of sales points by 40% to 169, excluding China [9] Market Data and Key Metrics Changes - Strong performance noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market remains challenging due to tariffs and policy changes [12] - Europe is now the main regional market, with Polestar present in 17 countries [12] - The U.S. represents about 9% of retail sales, with a focus on balancing volume and profitability [50] Company Strategy and Development Direction - The company is committed to electric mobility, emphasizing the transition to emission-free vehicles [5] - Strategic goals include increasing sales through commercial operations transformation, enhancing operating efficiency, and improving cash position [8] - The launch of Polestar 5 is seen as a significant milestone, showcasing the brand's commitment to performance and sustainability [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [11] - Despite challenges, the company expects to continue growing year on year in line with set growth targets [12] - The company is focused on optimizing product and channel mix while continuing cost reduction efforts [17] Other Important Information - The company raised $200 million in new equity and secured approximately $1 billion in new loan facilities [18] - Cash position at the end of June was $719 million, with ongoing efforts to improve working capital management [19] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, particularly in Europe, but there are shifts towards lower-priced models [24] - The margin decline was attributed to a negative car line sale mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes due to industry shifts [30] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [31][32] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and an average cash burn of around $140 million for the first half of 2025 [39] Question: U.S. market strategy post-EV tax credit - Management highlighted that 77% of sales are in Europe, with the U.S. being important but requiring a balance between volume and profitability [49][50]

Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [11][12] - Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and a growing share of higher-priced models [13][14] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [14][15] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [15] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of total sales volume [11] - Carbon credit sales amounted to $90 million, contributing positively to profitability [13][15] - The company has grown its number of sales points, excluding China, by 40% to 169 [9] Market Data and Key Metrics Changes - Strong performances were noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [12] - Europe is now the main regional market, with Polestar present in 17 countries [12] Company Strategy and Development Direction - The company is focused on increasing sales through a transformation of commercial operations, enhancing operating efficiency, and improving cash position [8][9] - The launch of Polestar 5 is anticipated to showcase the brand's capabilities and is set for September 8th at IIA in Munich [6][7] - The company aims to manufacture Polestar 7 in Slovakia, targeting the fast-growing compact SUV segment expected to launch in 2028 [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [11][14] - Despite challenges, the company expects to continue growing year on year in line with set growth targets [12] - The company will not issue financial guidance at this time but reiterates the target compound annual retail sale volume growth of 30% to 35% over 2025 to 2027 [21] Other Important Information - The company raised $200 million in new equity and secured about $1 billion in new loan facilities [18] - Cash position at the end of June was $719 million, with a focus on improving working capital management [19][38] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, particularly in Europe, but there are shifts towards lower-priced models [24] - The margin decline was attributed to a negative car line sale mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes without providing specific figures [30] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [31][32] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and a cash burn of around $140 million for the first half of 2025, with expectations for improvement in the second half [37][39] Question: U.S. market strategy post-EV tax credit - Management highlighted that 77% of sales are in Europe, with the U.S. representing 8%, and emphasized the need to balance volume and profitability [49][50] Question: Path to EBITDA break-even - Management is assessing external headwinds and working on a new business plan, with no specific guidance provided at this time [54]