This story was originally published on WardsAuto. To receive daily news and insights, subscribe to our free daily WardsAuto newsletter. Volvo Cars said it is bringing Thomas Ingenlath back as its chief designer on February 1, 2026, concluding a search for a new head of design that began months ago. Nicholas Gronenthal, had been serving as interim head of global design ever since Jeremy Offer stepped down from the role in July 2025. Now, Ingenlath will take over the duties as Gronenthal takes on the head ...

Following the closing of the transaction, no single financial institution in this equity financing transaction will own more than 10% of Polestar's outstanding equity. The price per Class A ADS to be purchased at the closing will be USD 19.34, equal to the volume-weighted average price of one Class A ADS for the last three months immediately preceding the date of the definitive agreement, rounded up to the nearest cent. The financial institutions will not have any restrictions on the sale of the Class A ADS ...

GOTHENBURG, Sweden--(BUSINESS WIRE)--Polestar (Nasdaq: PSNY), as borrower, entered into a credit agreement with a wholly owned subsidiary, as lender, of Geely Sweden Holdings AB in relation to a subordinated term loan facility of up to USD 600 million, of which the last USD 300 million would require lender consent based on Polestar's future liquidity needs. The term loan facility is available to Polestar for general corporate purposes. Forward-looking statements Certain statements in this press release ("Pr ...

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]

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 [12] - Net loss for the third quarter was $365 million, with a gross margin of negative 6% [14] 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 [13] - 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%) [5] - South Korea showed exceptional growth of 430% [6] - The U.S. market represented only 8% of retail sales for the first nine months of 2025, down from 16% in 2024 [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 [6] - The company plans to continue optimizing 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 pressure impacting profitability [9] - The company aims to drive growth through an active selling model and leverage its attractive model lineup [15] - Future guidance is expected to be provided in early 2026 [8] Other Important Information - The company raised $200 million in new equity from PSD Investment Limited [15] - A reverse stock split is planned to change the ratio of American depositary shares to ordinary shares [15] Q&A Session Summary Question: Can you help us bridge the walk for gross margin? - Management noted ongoing pricing pressure and higher production costs due to duties, alongside an adverse mix effect from sales [18][19] Question: Can you comment on OPEX spending trends? - Management indicated a significant decrease in fixed costs, driven by optimized marketing expenses and headcount reduction [21][22] Question: How is the company adapting its business plan in light of the new EU-US trade agreement? - Management discussed local production setups and the introduction of Polestar 4 to the U.S. market, which has lower duties [26] Question: What is the new effective rate of interest on Polestar's debt portfolio? - Management confirmed that most of the interest is floating, with no significant change to the previous rate [28] Question: Can you provide an update on capital needs and liquidity? - Management reported a monthly cash burn of around $136 million, with expectations for increased cash burn due to legacy CapEx [33] Question: What opportunities is Polestar pursuing in autonomy? - Management highlighted partnerships with Mobileye and the importance of balancing performance with higher levels of autonomy [36][38]

Core Insights - Polestar has closed its only direct sales store in Shanghai, marking a strategic shift in response to the evolving landscape of the electric vehicle industry and the challenges of the direct retail model [1][4][12] Company Overview - Polestar, originally a performance model series of Volvo, became an independent brand in 2017, targeting the high-end electric vehicle market with backing from Volvo and Geely [1] - The brand initially gained traction with the Polestar 1 hybrid sports car priced at 1.45 million yuan, creating a high-end image [1] Strategic Shifts - Following its initial success, Polestar shifted focus to the mass market, launching the Polestar 2 at a significantly lower price range of 250,000 to 300,000 yuan, and later introducing the Polestar 3 and Polestar 4 at varying price points [2] - This inconsistent pricing strategy has left consumers confused about Polestar's brand identity, failing to establish a luxury aura while lacking competitive pricing in the mass market [2][3] Sales Performance - In 2023, Polestar's global sales reached approximately 54,000 units, falling short of its target of 80,000 units set at the beginning of the year [2] - The brand's performance in China has been particularly poor, with sales dropping from 2,048 units in 2021 to just 1,100 units in 2023 [2] Management Challenges - Polestar has experienced significant management turnover in China, with seven different leaders in eight years, leading to instability and a lack of long-term strategic execution [3] - Key decision-making authority remains centralized in Sweden, hindering Polestar's ability to respond quickly to market changes [3] Cost-Cutting Measures - The closure of the Shanghai store is part of a broader global strategy to cut costs, including plans to lay off approximately 450 employees, which is about 15% of its workforce [4][5] - Polestar is transitioning to a "sales-driven production" model, aligning more closely with Geely's sales and service network [4] Industry Context - The challenges faced by Polestar reflect broader issues within the electric vehicle sector, where many brands struggle to find a sustainable retail model [6][12] - The high costs associated with direct retail, including significant rental and operational expenses, have led many brands to reconsider their strategies [7][9] Retail Model Comparison - The debate between heavy asset direct sales and light asset dealership models continues, with each having distinct advantages and disadvantages [9][10] - Some brands are exploring hybrid models that combine direct sales in major cities with dealership networks in lower-tier markets to balance control and expansion [10][11] Future Outlook - The closure of Polestar's direct store is seen as a new beginning rather than an end, indicating a shift towards more sustainable business models in the competitive electric vehicle market [12]

Core Viewpoint - Polestar has closed its last physical retail store in China, indicating a strategic shift in its business model to better align with the rapidly changing consumer demands in the Chinese market. This does not signify an exit from the Chinese market, as existing customer rights will remain unaffected [2][3]. Group 1: Business Strategy and Operations - Polestar is transitioning to an online sales model, with consumers able to access product information and purchase through digital channels. However, the online purchasing system has been closed, and test drive services are no longer offered [5]. - Despite poor sales performance in China, Polestar has established China as its most important production base, with models being produced in various cities for global markets. The production lines have shifted to focus on export-oriented models [7]. - In the first three quarters of the year, Polestar's global sales approached 45,000 units, with most vehicles produced in China [7]. Group 2: Sales Performance - In Q3 2025, Polestar's global retail sales reached 14,192 units, a year-on-year increase of 13%. Cumulatively, sales for the first nine months were approximately 44,482 units, reflecting a growth of 36% [8]. - In stark contrast, Polestar's sales in China have been dismal, with only 69 units sold in the first half of the year. This includes 56 units in January and only 1 unit in March [8]. Group 3: Financial Performance - As of the end of 2024, Polestar's total assets amounted to $40.54 billion, with liabilities at $73.83 billion, resulting in a negative net asset of $33.29 billion. Cumulatively, Polestar has incurred losses exceeding $5.1 billion from 2020 to 2024, with a single-year net loss of $2 billion in 2024 [8]. - Since its IPO in 2022, Polestar's stock price has plummeted by 90%, and it received a compliance notice from NASDAQ due to its stock price falling below $1 [13]. Group 4: Management and Organizational Changes - Polestar has been undergoing significant organizational changes, including a 10% workforce reduction and a focus on cost management. The company has also been reducing its presence in China, including the closure of its direct sales channels [10]. - The management team in China has seen instability, with seven different leaders in eight years. Recently, there has been a major overhaul of the global management team [12]. Group 5: Future Outlook - Polestar aims to achieve an annual retail sales growth of 30% to 35% from 2025 to 2027 and is targeting profitability by 2025 [12].

Core Viewpoint - Polestar has closed its last direct retail store in China, marking a strategic shift in its business model to adapt to the rapidly changing consumer demands in the Chinese market. The closure does not indicate an exit from the market, and existing customer rights will remain unaffected [2][3]. Group 1: Business Strategy and Operations - Polestar is transitioning to an online sales model, with customers able to purchase vehicles through digital channels, although the online purchasing system has been closed and test drives are no longer offered [3]. - Despite poor sales performance in China, the country has become Polestar's most important production base, with models being produced in various cities for global markets. The production lines have shifted to focus on export-oriented models [4]. - In the first three quarters of the year, Polestar's global sales approached 45,000 units, with a significant portion produced in China. The company reported a 36% increase in retail sales for the first nine months of the year [4]. Group 2: Financial Performance - Polestar's financial situation is concerning, with total assets of $40.54 billion and liabilities of $73.83 billion, resulting in a negative net asset of $33.29 billion. Cumulative losses from 2020 to 2024 exceed $5.1 billion, with a projected net loss of $2 billion for 2024 [5]. - In contrast to its global performance, Polestar's sales in China have been dismal, with only 69 units sold in the first half of the year, highlighting a stark difference in market reception [4]. Group 3: Management and Structural Changes - Polestar has been undergoing significant organizational changes, including a 10% workforce reduction and a focus on cost management. The company has also been scaling back its operations in China [6][7]. - The management team in China has seen instability, with seven different leaders in eight years. Recently, there has been a major overhaul of the global management team [7]. - Polestar aims for a 30% to 35% annual growth in retail sales from 2025 to 2027 and plans to achieve profitability by 2025, despite facing challenges in a competitive global EV market [7].

Core Insights - Polestar has closed its last direct retail store in Shanghai, marking a strategic shift in its business model in China while maintaining operations in the market [1][4] - The company is transitioning to an online sales model, with significant discounts on existing inventory, indicating a focus on cost management and adapting to market demands [2][4] - Despite poor sales performance in China, the country has become Polestar's most important production base, with a focus on exporting vehicles to international markets [4][5] Sales Performance - In Q3 2025, Polestar's global retail sales reached 14,192 units, a 13% year-on-year increase, with total sales for the first nine months approximating 44,482 units, reflecting a 36% growth [5] - In stark contrast, Polestar sold only 69 vehicles in China during the first half of the year, highlighting significant challenges in the local market [5] Financial Health - As of the end of 2024, Polestar's total assets were $40.54 billion, with liabilities at $73.83 billion, resulting in a negative net asset position of $33.29 billion [5] - Cumulatively, Polestar has incurred losses exceeding $51 billion from 2020 to 2024, with a projected net loss of $20 billion for 2024 alone [5] Management Changes - Polestar has experienced frequent changes in leadership, with seven different heads for the China region in eight years, indicating instability in management [8][9] - The company has been undergoing significant organizational restructuring, including a 10% workforce reduction and the closure of its joint venture in China [6][8] Future Strategy - Polestar aims for an annual retail sales growth of 30% to 35% from 2025 to 2027, with a target to achieve profitability by 2025 [10] - Since its IPO in 2022, Polestar's stock price has plummeted by 90%, raising concerns about its compliance with Nasdaq regulations due to falling below the $1 mark [10]