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Geely-owned EV manufacturer Polestar has outlined a revised business strategy, setting a target of 30-35% compound annual retail sales volume growth from 2025 to 2027.
The company also aims to achieve positive adjusted EBITDA in 2025, with further operational improvements anticipated from 2026 onwards. These include enhanced margins, lower fixed costs, and more efficient working capital management.
Polestar expects to generate positive free cash flow after investments by 2027.
Polestar CEO Michael Lohscheller said: “We are building on the strong Polestar brand with design and performance at its core.
“We are speeding up our retail expansion and commercial transformation, whilst adjusting our future model line-up and significantly reducing our cost base. Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar’s history.”
The company is also planning to launch Polestar 5, a performance four-seat grand-tourer, in second half of 2025. The model will be built on an in-house developed bonded-aluminium platform and will feature 800-Volt technology.
Additionally, Polestar has announced plans to produce the Polestar 7, a “premium” compact SUV.
It will be manufactured in Europe, further expanding the company’s international manufacturing network, which currently includes facilities in the US, South Korea, and China.
Polestar is also accelerating its move to an active sales model by adding new retail partners and locations.
The firm’s retail spaces in Europe are planned to grow from 70 to 130, and in North America from 36 to 57 while maintaining its direct-to-consumer online sales channel.
These changes have already shown positive results, with retail sales rising by 5.3% and order intake by 37.2% in Q4 2024 compared to the same period last year. Polestar 3 and Polestar 4 accounted for 56% of orders in Q4, building strong momentum for 2025.
Polestar's market expansion will focus on France starting in 2025, with plans to further grow in Eastern Europe, Asia, and Latin America from 2026.
The company also anticipates a significant boost in revenue from the sales of CO2 credits, expecting a three-digit million-dollar annual contribution from 2025.
In addition to its automotive advancements, Polestar is launching Polestar Energy, an new energy business in Europe.
This venture offers customers up to 30% savings on home charging costs via an app and will expand to more markets with the introduction of bidirectional charging capabilities.
Customers will also benefit from Polestar Charge, providing access to over 850,000 charging points in Europe, including Tesla Superchargers.