Swedish automotive manufacturer Polestar, which is publicly listed on the US Nasdaq exchange, reported a substantial increase in its retail sales volume for the first quarter of 2025. The company estimates that it sold 12,304 units during this period, marking a remarkable 76% increase compared to the same timeframe in 2024. However, sales figures showed stability when compared to the fourth quarter of 2024.
This performance is notable given the broader economic challenges, including geopolitical fluctuations and macroeconomic uncertainties, that have been affecting the automotive industry. And Polestar itself hadn’t been faring well, with a difficult year in 2024 marked by financial issues and changes in leadership.
The surge in sales early this year can be attributed to two primary factors: the growing adoption of Polestar’s latest vehicle models and a strategic shift towards a more active selling model. This approach involves greater involvement from retail partners and an expansion of the company’s distribution network.
Michael Lohscheller, the Chief Executive Officer of Polestar, noted that this new sales strategy was yielding positive results, although he also emphasised the importance of remaining vigilant in monitoring geopolitical risks that could impact the business.
Polestar has aimed to enhance its commercial presence by forming broader distribution partnerships and offering a diverse range of vehicles that cater to market demands. This shift in strategy is part of a larger transformation of its commercial operations, designed to improve efficiency in a highly competitive automotive market.
However, Polestar recently asked for more time to publish its annual financial results for the 2024 fiscal year. The annual report for 2024 on Form 20-F is now expected to be filed before or on 14 May 2025. It also said that “given the current uncertainty surrounding international tariffs and government regulations impacting Polestar’s business and market dynamics, Polestar is pausing its financial guidance for 2025.”
As a brand focused on electric vehicles, Polestar continues to adjust its strategies in response to evolving market dynamics while reinforcing its market presence within premium automotive segments. The stability in sales over two consecutive quarters may indicate a potential easing of pressure. But it isn’t completely out of the woods yet.
