Key facts
- Polestar reduced its full-year delivery forecast to low-to-mid single-digit growth.
- The company exited the U.S. market due to U.S. government restrictions.
- Second-quarter net loss narrowed to $459 million.
- Revenue for the second quarter decreased by 8% to $727 million.
- Polestar incurred about $130 million in charges related to its U.S. restructuring.
Polestar, a Swedish electric vehicle manufacturer majority-owned by China's Geely Holding, has reduced its full-year delivery forecast due to its exit from the U.S. market. The company now anticipates low-to-mid single-digit volume growth, a decrease from its previous projection of low double-digit growth. This adjustment follows the Trump administration's decision in June to deny Polestar authorization to sell vehicles in the United States from model year 2027 onwards, making it the first automaker forced out of the U.S. market.
Despite the challenging environment, Polestar CEO Michael Lohscheller stated the company remains disciplined and focused on business improvement. In the second quarter, Polestar reported a net loss of $459 million, a 55.3% reduction compared to the previous year, largely due to a significant impairment charge recorded in the prior year. However, revenue for the quarter declined by 8% to $727 million. The company also incurred approximately $130 million in charges related to its U.S. restructuring, covering inventory, residual value guarantees, and employee and supplier provisions.
Polestar experienced negative free cash flow of $1.06 billion in the first half of the year, an increase from $787 million in the same period last year, even after raising $700 million in new equity. Retail sales saw a 4.0% decrease in the second quarter. The company did note that retail sales rose 0.4% year-on-year to 30,423 in the first half of 2026. Polestar is preparing to launch its new SUV 4 and other refreshed models in the coming years, with third-quarter financial results expected on November 5.