VIDEO Polestar chief outlines mission to return to profit, with greater dealership focus

Swedish EV manufacturer Polestar has outlined ambitions plans for 2025 with a focus on expanding its product line and retail and manufacturing footprint to help the brand return to profitability after racking up significant losses.

Since taking office in October, CEO Michael Lohscheller has launched a turnaround strategy aimed at achieving positive earnings this year, driven by an expanded model range and aggressive sales growth targets.

Watch Polestar chief outlines mission to return to profit, with greater dealership focus

Polestar’s lineup was initially limited to the Polestar 2, but the addition of the large Polestar 3 SUV and the mid-size crossover Polestar 4 has diversified its offerings. The company now plans to launch the large GT Polestar 5 and the electric roadster Polestar 6 by year-end.

The former Opel executive said 2025 would mark a turning point: “Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar’s history.”

To support these goals, Polestar is broadening its retail strategy while retaining its online-only offering, delivering vehicles through a limited network of ‘Polestar Spaces.’

“Polestar is accelerating its shift to an active selling model,” the business said. “With new retail partners and more retail spaces.”

Together with its partners, Polestar plans to expand from 70 to 130 and from 36 to 57 retail spaces in Europe and North America. The established direct-to-consumer online sales channel will remain, giving customers a choice of channel.

Since Polestar began UK operations in 2020, with its exclusively online sales strategy, a 2024 pivot to a non-genuine agency model allowed its UK retail partners to take a more active role in selling directly to customers.

The UK retail network, which began with Endeavour Automotive’s London showroom, has grown to nine locations in partnership with Waylands, Snows and Riverside. That is now set to double within the next 18 months with the addition of a further eight spaces.

In the UK, Polestar will this year launch the Polestar 3 LRSM (Long Range Single Motor) with a 438 miles (WLTP) range and the Polestar 5 which has been largely engineered in the UK.

Polestar also aims to diversify its production base. To date, its vehicles have been primarily manufactured in Asia at parent Geely’s plants in China and in South Korea under contract while the Polestar 3 is the sole model produced in the United States.

As part of the new strategy, Polestar has announced the launch of the Polestar 7 which will be built in Europe, though specific details regarding the location, timeline, and manufacturing partners remain to be confirmed.

European production is expected to help Polestar mitigate import duties and reduce shipping costs. “The costs are significantly lower than shipping cars around the world,” Lohscheller noted.

Before Lohscheller’s tenure, Polestar had reported a Q3 2024 turnover of £440.8 million, a 10% decline compared to Q3 2023.

The Q3 adjusted EBITDA was -£144.4m, an improvement over the previous year’s Q3 figure of -£201.84m. Cumulatively, losses for the first three quarters of 2024 totalled -£482.08m.

Sales volumes dropped by 8% to 12,548 cars although showed signs of recovery in Q4 with a 5.3% increase in retail sales and a 37.2% increase in order intake in Q4 2024 compared to the same quarter last year.

The car maker also announced the launch of Polestar Energy, a service designed to reduce EV charging costs. Available in 11 European markets, including the UK, customers will be able to save up to 30% on home charging using the Polestar Energy app which optimises charging times and integrates with the grid, offering savings with bidirectional charging capabilities.

Polestar also said it expects to see substantial revenue growth from the sale of CO2 credits. With demand projected to rise, Polestar’s EU CO2 pool which counts four OEMs as members is forecast to generate hundreds of millions in revenue annually from 2025.

Already present in 27 markets, Polestar’s said it is to enter the French market where the Polestar 2, 3, and 4 models will be available.