38%
18,049
51%
30,319
Polestar's Remarkable Turnaround: From Decline to Double-Digit Growth
Polestar's Q2 2025 performance represents a dramatic reversal from the struggles of 2024, when the Swedish electric performance brand faced declining sales amid fierce EV market competition. The company's 38% year-on-year growth in the second quarter demonstrates successful execution of its multi-model strategy and retail expansion initiatives.
The Swedish automaker's resilience in Europe, supported by targeted offers and discounts, has offset challenges in other markets weighed down by high interest rates and competition from affordable hybrid alternatives. This regional strength has become Polestar's foundation for sustained growth.
Multi-Model Portfolio Driving Success
Market Position: The original Polestar model that established the brand's performance credentials in the premium EV segment.
Strategic Importance: Now assembled in Ridgeville, South Carolina, eliminating tariff concerns while meeting growing SUV demand.
Innovation Focus: Revolutionary SUV coupé design targeting younger, design-conscious premium EV buyers.
Regional Performance: Europe Leads Recovery
While Polestar's vehicle sales in the US fell 56% in the second quarter, the company's European performance has remained remarkably resilient. This geographic divergence highlights the importance of market-specific strategies in the global EV transition.
Polestar participates in the Mercedes-Volvo-Polestar pool, which achieved a 22% BEV share in European registrations, demonstrating strong competitive positioning.
American EV market pressures from competition and consumer hesitancy around premium battery vehicles continue to impact sales volumes.
Upcoming Polestar 7 production in Slovakia at Volvo's Kosice facility will enable tariff-free EU manufacturing and supply chain optimization.
Advanced "cell-to-body" battery technology shared with Volvo Cars reduces weight while boosting range and efficiency.
We've delivered another strong quarter of growth, in increasingly challenging market and geopolitical conditions. Volume growth of 38% in the second quarter and 51% in the first half of the year is a clear sign that our retail expansion is delivering and that more customers are choosing Polestar.
Strategic Initiatives Driving Growth
Retail Expansion and Market Access
Polestar is accelerating its shift to an active selling model, planning to expand from 70 to 130 retail partners and from 36 to 57 retail spaces in Europe and North America. This expansion directly supports the company's volume growth objectives.
The company's entry into France in 2025 represents a significant opportunity, as France is one of Europe's largest and fastest-growing EV markets, perfectly aligned with Polestar's premium brand positioning.
Revenue Diversification Strategy
Polestar expects significantly increased revenue from CO2 credit sales, potentially reaching three-digit million-dollar amounts annually from 2025.
New energy business offering makes home charging smarter, more efficient, and cheaper for European customers.
European customers access over 850,000 charging points including Tesla Superchargers, while North American customers have access to over 17,800 Tesla Superchargers.
Planned models include the Polestar 5 four-door GT (2025), Polestar 6 roadster, and Polestar 7 compact SUV for continued portfolio expansion.
Market Context and Competitive Landscape
Polestar's strong performance comes despite broader challenges facing the EV sector, including high interest rates, inflation, and increased availability of affordable hybrid alternatives. The company's premium positioning and European focus have provided insulation from these market pressures.
