Polestar Q1 2025 84% revenue

A growing share of higher margin models in the sales mix and continuing cost reduction measures start to drive financial and operational performance improvement, says Polestar in releasing its Q1 2025 reports.

Gross margin improved by 15ppts to 7% versus Q1 2024, net loss reduced by 31%; an adjusted EBITDA loss improvement of 46% year-on-year (YoY), more than US$900 million worth of financing facilities secured or renewed, and a cash position of US$732 million are among  highlights, says Polestar in reporting select financial and operational results for the quarter ended March 31, 2025 (Q1 2025).

“We continue to make great progress, transforming our commercial operations and taking steps to reduce our cost base,” says Polestar chief executive Michael Lohscheller.

“We are selling more cars, at improved margins, resulting in revenue growth of 84% (US$278 million), a gross margin that is now positive at about 7%, and a narrowing net loss (US$190 million – a US$86m decrease) and growing line-up of attractive cars, with an expanding network of retail partners across key markets,” he says.

“The geopolitical environment and market conditions are challenging, but we are on the right track and doing the right things.”

Retail sales were an estimated 12,304 cars, up 76.4% YoY supported by a growing uptake of newer models, says Polestar, adding adjusted EBITDA loss of US$115 million, decreased by US$97 million due to gross margin improvement, cost savings from headcount reduction in 2024, optimised marketing spend, and positive FX impacts were partially offset by its share of the losses in the joint venture with Hubei Xingji Meizu Group Co. Ltd, with Polestar saying it has since terminated the joint venture and transferred distribution rights to Polestar as a result of a change in market focus and strategy.

Polestar says it remains fully committed to the Chinese market and will continue to pursue its long-term strategy for growth and innovation while protecting its premium brand position in China.

“We continue to work closely with Geely Group on securing new equity and debt funding,” says Polestar which expects to launch in France in summer 2025 with Stéphane Le Guevel appointed managing director.

Polestar 2 model year 2026 has been introduced and is available to order, including new features and technology updates, while the  Polestar 3 achieved a five-star Euro NCAP rating including setting new standards for child occupancy protection, and the Polestar 4 won ‘Car of the Year’ in South Korea, says the brand.

Polestar Energy launched in 11 markets, offering customers smarter, more efficient and cheaper home charging, says Polestar which expects to report its retail sales volumes for Q2 2025 on July 10, 2025.