Polestar hopes four new EV models will help reverse multi-billion dollar loss in 2025

Swedish electric vehicle manufacturer Polestar reported a significant net loss of $2.357 billion in 2025, despite a substantial increase in sales and revenue. The company achieved a 34 per cent rise in retail sales, delivering over 60,000 cars, and boosted its revenue by 50 per cent to just over $3 billion. However, the widening loss was largely attributed to impairment charges and non-cash write-downs on assets amounting to $1.05 billion, which exacerbated financial challenges compared to the previous year. Polestar’s CEO, Michael Lohscheller, highlighted that the company’s strong commercial performance was supported by expanding its sales network and strengthening its product lineup. The firm, which is ultimately owned by China’s Geely, has been actively raising capital to sustain its operations, securing $700 million in new equity and extending a $726 million shareholder loan from Volvo Cars. Despite these efforts, the company continues to face pressure to improve its profitability amid a competitive and evolving EV market. Looking ahead, Polestar plans to launch four new electric vehicle models over the next few years as part of its largest product offensive. The upcoming releases include the Polestar 5 later this year, a new variant of the Polestar 4, the next-generation Polestar 2 in 2027, and the Polestar 7 in 2028. Lohscheller emphasised that 2026 will focus on expanding the sales network by 20 per cent to support these new models, aiming to improve the company’s financial performance through a better model mix, cost reductions, and disciplined financial management. The company remains cautious about the broader market environment, anticipating more challenging conditions due to ongoing geopolitical uncertainties. Nevertheless, Polestar is committed to building on its 2025 achievements and driving growth in the competitive electric vehicle sector. The success of its new model launches and network expansion will be crucial in reversing its substantial losses and moving towards sustainable profitability in the coming years.