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 ...

Core Viewpoint - Polestar has received a warning from Nasdaq for failing to comply with the minimum bid requirement of $1.00 per share, with its current stock price at $0.84, close to its 52-week low of $0.82 [1][3] Group 1: Stock Performance - Polestar's stock has been below $1.00 since the end of September, with a significant drop from its 52-week high of $1.42 [3] - The company has until April 29 of the following year to regain compliance, requiring the stock price to be at least $1.00 for ten consecutive trading days [3] - If compliance is not achieved, Polestar may receive an additional grace period of up to 180 days [3] Group 2: Business Highlights - Despite stock concerns, Polestar reported a 13% year-over-year increase in retail sales for Q3, totaling 14,192 vehicles, and a 36% increase year-to-date, reaching 44,482 vehicles [3] - The company unveiled the production version of Polestar 5 at the Munich Motor Show, featuring a bold design, a 112 kWh battery, and a maximum power output of 872 horsepower (650 kW / 884 PS) [3] - On October 1, Polestar launched the upgraded Polestar 3, which includes a new 800V electrical architecture, new battery, and enhanced motor for improved acceleration, power, and efficiency [3]

Core Insights - Polestar has shut down its two R&D sites in the UK and laid off 130 staff, shifting R&D efforts to its headquarters in Sweden [1][2] - The decision follows the completion of engineering work for the Polestar 5 model, indicating a strategic focus on centralizing operations [2] - Polestar is majority-owned by Chinese conglomerate Geely and has been focusing more on the European market due to challenges posed by US tariffs [3] Company Performance - Polestar sold a record 2,758 vehicles in the UK last month, but reported a significant net loss of $1.03 billion in Q2 2025 [3] - The company’s sales performance lags behind Tesla, which had nearly 8,000 new registrations in the UK during the same period [4] - In January 2024, Polestar announced plans to cut 450 jobs globally, representing about 15% of its workforce [4]

Core Insights - Polestar has shut down its two R&D sites in the UK and laid off 130 staff as part of a strategic shift to centralize R&D efforts in Sweden [1][2] - The decision follows the completion of engineering work for the Polestar 5 model, indicating a focus on streamlining operations [2] - The company is facing financial challenges, reporting a net loss of $1.03 billion in Q2 2025, while also experiencing a significant cash burn [3] Company Strategy - Polestar is centralizing its R&D work at its headquarters in Sweden to create a leaner organizational structure [2] - The company aims to focus on developing high-performance electric vehicles (EVs) [2] Market Position - Polestar's sales in the UK reached a record of 2,758 vehicles last month, but still lag behind Tesla, which had nearly 8,000 new registrations in the same period [3][4] - The company has increasingly shifted its focus to Europe due to challenges posed by US tariffs on the global auto industry [3] Workforce Changes - In January 2024, Polestar announced plans to cut 450 jobs globally, representing about 15% of its workforce [4]

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 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]

Core Insights - Polestar has closed its last direct store in Shanghai, marking a strategic shift in its business model in China to better align with the rapidly changing consumer demands [1][5] - The company is transitioning to an online sales model, with a focus on digital channels for product information and purchasing [2][5] - Despite poor sales performance in China, Polestar has established the country as its primary production base, exporting vehicles globally [5][6] Sales Performance - In the first half of the year, Polestar sold only 69 vehicles in China, while globally, it sold 30,300 vehicles, a 51% increase year-on-year [6] - For Q3 2025, Polestar's global retail sales reached 14,192 units, a 13% increase, with a total of approximately 44,482 units sold in the first nine months, marking a 36% growth [5][6] Financial Status - As of the end of 2024, Polestar's total assets were $40.54 billion, with liabilities of $73.83 billion, resulting in a negative net asset of $33.29 billion [6] - The company has accumulated losses exceeding $5.1 billion from 2020 to 2024, with a projected net loss of $2 billion for 2024 [6] Management Changes - Polestar has experienced frequent changes in its management team, with seven leaders in the China region over eight years [7][10] - The company plans to achieve an annual retail sales growth of 30% to 35% from 2025 to 2027 and aims for profitability by 2025 [7][10] Market Challenges - Since its IPO in 2022, Polestar's stock price has dropped by 90%, and it received a compliance notice from NASDAQ due to its stock price falling below $1 [10]

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]