Polestar Plans European Production to Address Costs and EU Tariffs

The Swedish EV maker, backed by Chinese ownership, aims to expand its footprint with localized manufacturing and broader retail presence.

Polestar's CEO Michael Lohscheller announced intentions to produce the Polestar 7 model in Europe, though specific locations and partners remain undecided.
The decision follows the EU's introduction of tariffs on Chinese-made electric vehicles and aims to reduce shipping costs.
Polestar plans to expand its physical retail presence, introducing around 300 dealerships globally to complement its online sales model.
The company faced a challenging 2024, with a 15% drop in vehicle deliveries and a revised revenue outlook, but aims to achieve financial independence by 2027.
Polestar faces regulatory challenges in the U.S., where restrictions on Chinese-controlled automakers will impact sales of connected vehicles starting in 2027.