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Polestar Q1 Loss Deepens as Gross Margin Turns Negative, Cash Falls

Fresh equity alongside loan-to-equity moves aims to extend the runway.

A Polestar 3 and a Polestar 4 are parked outside Polestar's design studio in Gothenburg, Sweden, February 16, 2026. REUTERS/Marie Mannes/File Photo

Overview

  • Polestar reported a $383 million net loss on roughly flat revenue of $633 million, even as retail deliveries rose 7% to 13,126 vehicles.
  • Gross margin fell to -3.2%, resulting in a $20 million gross loss that the company linked to price cuts, EU and U.S. tariffs, lower carbon‑credit sales, and one‑off items.
  • Cash dropped to $676 million from $1.16 billion three months earlier, with a wider adjusted EBITDA loss of $235 million and working‑capital swings draining liquidity.
  • To shore up finances, Polestar raised $700 million from financial institutions, began converting shareholder loans to equity with Volvo Cars and Geely, and renewed more than $1.4 billion in credit facilities.
  • Management gave no financial outlook and said it is accelerating cost and manufacturing changes, while keeping plans for a new Polestar 4 later in 2026 and an all‑new Polestar 2 in 2027.