Geely-owned Polestar has set out plans to broaden its electric vehicle (EV) portfolio with four new models scheduled between 2026 and 2028, as part of its next growth phase. It represents what the Swedish EV manufacturer described as “largest” product expansion in its history. The rollout will begin with the Polestar 5 four-door grand tourer, with deliveries due to start in summer this year. Later this year, in the fourth quarter, the company intends to introduce a new variant of the Polestar 4 SUV to ...

Polestar Automotive (NasdaqGM:PSNY) Update / briefing February 18, 2026 07:00 AM ET Company ParticipantsAnna Gavrilova - Head of Investor RelationsFredrika Klarén - Head of SustainabilityGiacomo Reghelin - Equity Research Senior AssociateMichael Lohscheller - CEOPhilipp Römers - Head of DesignStephanie Johansson - HostNone - Video NarratorConference Call ParticipantsAndres Sheppard - Managing Director and Senior Equity AnalystCamille Obeid - Equity Research AnalystStephanie JohanssonHello, everyone, and wel ...

Electric vehicle maker Polestar will roll out refreshed versions of its top-selling Polestar 2 and 4 models over the next year to support European sales, it said on Wednesday, choosing quick, lower-co... ...

Core Insights - Canada is easing tariffs on Chinese-made electric vehicles (EVs), allowing up to 49,000 vehicles annually at a 6.1% tariff, a significant reduction from the previous 100% duty imposed in 2024 [1][2] - The deal includes a price-based clause, reserving half of the annual quota for EVs priced under CAD 35,000, aimed at increasing access to affordable electric vehicles [1][2] Group 1: Impact on Major Players - Tesla is well-positioned to benefit from the new tariff structure, having already established a production base in China and configured its Shanghai Gigafactory for a Canada-specific Model Y, leading to a 460% year-over-year increase in China-built auto imports through Vancouver prior to the 2024 tariff [5][6] - Geely's brands, including Volvo and Polestar, can resume importing Chinese-built models, which had been paused due to tariffs, leveraging their existing brand recognition and dealer networks in Canada [7][9] - General Motors is unlikely to gain from the revised tariff framework as its China EVs are not approved for sale in Canada, and significant redesigns would be required for compliance with Canadian safety standards [10][11][12] Group 2: Opportunities and Challenges - BYD fits within the new deal's scope but faces challenges in the near term due to the need for certification and the establishment of distribution networks in Canada, despite having a local electric bus assembly plant in Ontario [13][14][15] - The policy shift is expected to lower prices for consumers and accelerate EV adoption in Canada, with China accounting for approximately 70% of global EV production [3]

Core Viewpoint - Volvo Cars has announced the return of Thomas Ingenlath as chief designer, effective February 1, 2026, marking the conclusion of a search for a new head of design that has been ongoing for several months [1][2]. Group 1: Leadership Changes - Nicholas Gronenthal has been serving as the interim head of global design since Jeremy Offer's departure in July 2025; Ingenlath will take over his duties while Gronenthal transitions to lead the design for the Americas unit [2]. - Ingenlath's return is seen as a reinforcement of Volvo Cars' leadership in design, highlighting his influential role in the company's recent history [2]. Group 2: Ingenlath's Background - Ingenlath previously held a lead design role at Geely, Volvo's parent company, and will re-establish his relationship with Håkan Samuelsson, who was CEO during Ingenlath's first tenure [3]. - He has a strong background in automotive design, having graduated from London's Royal College of Art and previously worked with Volkswagen Group, where he defined Skoda's design identity and contributed to various concept cars [4][5]. Group 3: Design Philosophy - As chief design officer, Ingenlath will join the executive management team and lead Volvo Cars' global design organization, emphasizing that design is fundamental to the brand's identity [4]. - Samuelsson stated that design is one of Volvo Cars' greatest strengths and will continue to differentiate the company in the premium electric mobility sector, with Ingenlath's experience expected to enhance their design leadership [8].

Core Viewpoint - Polestar has secured a USD 300 million equity investment from Banco Bilbao Vizcaya Argentaria, S.A. and NATIXIS, enhancing its liquidity and balance sheet strength [1][3] Investment Details - Each financial institution is investing USD 150 million, and they have entered into a put option arrangement with Geely Sweden Holdings AB, allowing for an exit path in three years [1] - Geely Sweden Holdings AB will convert approximately USD 300 million of outstanding principal and interest owed by Polestar into equity, pending regulatory approvals [2] - The price per Class A ADS for the investment will be USD 19.34, based on the volume-weighted average price over the last three months [3] Company Background - Polestar is a Swedish electric performance car brand focused on design and sustainability, with operations in 28 markets globally [5] - The company has four models in its lineup and plans to introduce additional models, including the Polestar 7 compact SUV in 2028 [6] Sustainability Commitment - Polestar aims to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040, focusing on Climate, Transparency, Circularity, and Inclusion [7]

Group 1: Credit Agreement - Polestar has entered into a credit agreement with a subsidiary of Geely Sweden Holdings AB for a subordinated term loan facility of up to USD 600 million, with the last USD 300 million contingent on lender consent based on Polestar's future liquidity needs [1] Group 2: Company Overview - Polestar is a Swedish electric performance car brand focused on design and innovation, aiming to accelerate the transition to a sustainable future, with its headquarters in Gothenburg, Sweden, and availability in 28 markets globally [2] - The company currently offers four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5, with future models including the Polestar 7 compact SUV planned for 2028 and the Polestar 6 roadster [3] Group 3: Sustainability Commitment - Polestar is committed to sustainability, aiming to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040, with a comprehensive strategy focusing on Climate, Transparency, Circularity, and Inclusion [4]

Core Insights - Polestar's stock is currently trading below 1 dollar, reflecting a year-to-date decline of over 36 percent and a 46 percent loss over the past year, indicating significant volatility and uncertainty regarding its profitability [2][5] - The company faces challenges from rising manufacturing costs, competitive pricing pressures, and mixed demand for new electric vehicle (EV) offerings, which have contributed to fragile investor confidence [2][5] - Analysts project a consensus price target of 2.34 dollars for Polestar, with significant variability in estimates, highlighting the uncertainty surrounding the company's financial stability and market conditions [8] Trading Behavior and Market Conditions - Technical indicators show that Polestar's stock is near key moving-average support levels, while overall sentiment remains bearish [1] - The stock's 52-week range has been between 0.12 and 0.80 dollars, underscoring persistent volatility [2] - Tariff exposure, particularly concerning EV imports and battery components, poses additional risks, as shifts in trade policy could increase production costs or limit market access [1][5] Financial Performance and Projections - Despite steady growth in the EV sector, Polestar has struggled with ongoing operational losses and high debt levels, complicating its long-term outlook [5] - Analysts predict limited upside for Polestar in 2025, with projections indicating a bearish trend continuing into 2030, reflecting concerns over elevated input costs and tariff risks [13][14] - Long-term projections show wide variability influenced by regulatory changes and global EV demand, with sustainable revenue expansion being essential for meaningful appreciation [17] Bull and Bear Cases - The bull case for Polestar emphasizes its potential to carve out a niche in the global EV market through expansion and new model introductions, supported by majority owner Geely [11] - The bear case highlights significant macro and operational risks, including rising tariffs, supply chain disruptions, and competition from larger automakers, which could hinder profitability and lead to further stock depreciation [12]

Financial Data and Key Metrics Changes - Retail sales volume increased by 36% to over 44,000 cars in the first nine months of 2025 [9] - Revenue grew by 49% to approximately $2.2 billion in the first nine months of 2025 [10] - Adjusted EBITDA loss improved by 8% to $561 million, reflecting fixed cost reductions and carbon credit income [13] - Net loss for the third quarter was $365 million, with a gross margin of negative 6%, a deterioration of 5 percentage points [15] Business Line Data and Key Metrics Changes - Retail sales in the third quarter grew by 13% year-on-year, with revenue increasing by 36% to $748 million [14] - The Polestar 3 and Polestar 4 accounted for 65% of retail sales [9] - Carbon credit sales amounted to $104 million under the new EU pooling agreement, a significant increase from below $1 million in the same period in 2024 [11] Market Data and Key Metrics Changes - Europe remains the main market, representing over 75% of global deliveries, with notable growth in Belgium (40%), Netherlands (37%), Germany (46%), Norway (63%), Sweden (41%), and the U.K. (100%) [6] - Korea showed exceptional growth of 430% [7] - The U.S. market represented only 8% of retail sales for the first nine months of 2025, down from 16% in 2024, due to tariff and policy challenges [10] Company Strategy and Development Direction - The company is focusing on transforming commercial operations, increasing retail footprint, and improving operational efficiency [4] - A shift in platform strategy was announced, utilizing group technology platforms for future models [7] - The company plans to continue optimizing its operations and expects to end the year with approximately 2,000 employees, down from 2,500 [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant external headwinds, including tariff and pricing pressures impacting profitability [9] - The company aims to drive growth through an active selling model and leverage its attractive model lineup [16] - Management expressed optimism about the prospects for the Polestar 4 in North America, highlighting positive media reception [8] Other Important Information - The company raised $200 million in new equity from PSD Investment Limited, controlled by Mr. Li Shufu, founder and chairman of GD Group [16] - A reverse stock split is planned to change the ratio of American depositary shares to ordinary shares [16] Q&A Session Summary Question: Can you help us bridge the walk for gross margin? - Management noted that Q3 gross margin was disappointing due to pricing pressure and higher production costs, with an adverse mix effect from selling more Polestar 2 and 3 [19][20] Question: Can you comment on OPEX spending trends? - Management indicated a significant decrease in fixed costs, driven by optimized marketing expenses and headcount reduction, aiming to reach 2,000 employees by year-end [23][24] Question: How is the bilateral trade agreement affecting business plans? - Management discussed local production in the U.S. and the introduction of Polestar 4 from South Korea, which has lower duties, as a positive setup for optimizing the U.S. business model [28] Question: What is the new effective rate of interest on Polestar's debt portfolio? - Management confirmed that most of the interest rate is floating, with no significant change to the previous rate [31] Question: Can you provide an update on capital needs and liquidity? - Management reported a monthly cash burn of around $136 million, with expectations for an increase due to legacy CapEx, while actively working on improving working capital [36][38] Question: What are the opportunities in autonomy for Polestar? - Management highlighted partnerships with Mobileye and the importance of balancing performance with higher levels of autonomy as a focus area for the future [41][42]

Financial Data and Key Metrics Changes - Retail sales volume increased by 36% to over 44,000 cars in the first nine months of 2025, with Polestar 3 and Polestar 4 accounting for 65% of sales [9][10] - Revenue grew by 49% to approximately $2.2 billion in the first nine months of 2025, driven by higher sales volume and an increased share of higher-priced models [10][11] - Adjusted EBITDA loss improved by 8% to $561 million, reflecting fixed cost reductions and carbon credit income [13] - Net loss for the third quarter was $365 million, with a gross margin of -6%, a deterioration of 5 percentage points year-on-year [14][15] Business Line Data and Key Metrics Changes - Retail sales in the third quarter grew by 13% year-on-year, with revenue increasing by 36% to $748 million [14] - Carbon credit sales amounted to $104 million under the new EU pooling agreement, a significant increase from below $1 million in the same period in 2024 [11] Market Data and Key Metrics Changes - Europe remains the main market, representing over 75% of global deliveries, with notable growth in Belgium (40%), the Netherlands (37%), Germany (46%), Norway (63%), Sweden (41%), and the U.K. (100%) [6][9] - South Korea showed exceptional growth of 430%, while the U.S. market represented only 8% of retail sales, down from 16% in 2024 due to tariff and policy changes [10][11] Company Strategy and Development Direction - The company is focusing on commercial transformation, increasing retail footprint, and improving operational efficiency [4] - A shift in platform strategy was announced, utilizing group technology platforms for future models to access the best EV technology [7] - The company plans to continue optimizing operations and reducing headcount, targeting approximately 2,000 employees by year-end [7][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant external headwinds, including tariff and pricing pressures impacting profitability [9] - The company aims to end the year strongly and expects to provide guidance in early 2026 [8] - Management is optimistic about the prospects for the Polestar 4 in North America, highlighting its competitive advantages [8] Other Important Information - The company raised $200 million in new equity and secured about $1 billion in new facilities, with a cash position of $995 million at the end of September [16] - A reverse stock split is planned to change the ratio of American depositary shares to ordinary shares [16] Q&A Session Summary Question: Can you help us bridge the walk for gross margin? - Management noted that Q3 gross margin was disappointing due to pricing pressure and higher production costs, despite some cost reductions [19][20] Question: Can you comment on OpEx spending trends? - Management indicated a significant decrease in fixed costs, driven by optimized marketing expenses and headcount reduction, with plans to accelerate these efforts [23][24] Question: How will the bilateral trade agreement affect Polestar's business plan? - Management expressed optimism about local production in the U.S. and the introduction of Polestar 4 from South Korea, which has lower duties [28] Question: What is the new effective rate of interest on Polestar's debt portfolio? - Management confirmed that most of the debt is floating, with no significant change to the previous effective rate [31][32] Question: Can you provide an update on capital needs and liquidity? - Management reported a monthly cash burn of around $136 million, with expectations for an increase due to legacy CapEx, but noted improvements in normalized cash burn [36][38] Question: What are Polestar's plans regarding autonomy? - Management highlighted partnerships with Mobileye and emphasized the importance of balancing performance with autonomy in future models [41][42]