EV maker Polestar revenues up 84%, seeks to bolster presence in Europe

Polestar Automotive Holding’s losses narrowed in the first quarter as the electric-vehicle maker sold more of its newer models and cut costs.

Net losses fell to $190 million from $276 million a year earlier, as higher margin models made up a greater share of overall sales, the company said Monday.

Revenue rose 84%.

After taking over as chief executive officer last year, Michael Lohscheller has accelerated the company’s pivot to a more traditional dealership model and started scaling back its presence in the competitive China market.

Next target: France

Polestar is entering France this summer and expects to increase retail spaces in Europe and North America by 75% by next year.

The first-quarter results come after a rough 2024, marked by disappointing uptake of its Polestar 3 and 4 models, which forced it to postpone a cash-flow breakeven target.

The company, which is controlled by Chinese billionaire Li Shufu’s Geely Group, has lost most of its value since spinning out of Volvo Car AB in 2022 and is continuing to work closely with its owner on securing new equity and debt funding, it said. 

Like other carmakers such as Stellantis NV and Mercedes-Benz Group AG, Polestar recently paused its financial guidance for 2025 due to uncertainty linked to tariffs and regulations hitting the industry.