Polestar Struggles to Navigate Losses, U.S. Ban, and Competitive EV Market

The Chinese-owned EV brand plans to shift strategies, launch new models, and expand European manufacturing to counter financial challenges and geopolitical hurdles.

Polestar reported a $323 million net loss in Q3 2024, equating to over $25,000 lost per vehicle sold, as the company continues to struggle with profitability.
The U.S. ban on Chinese car sales, citing national security concerns, poses a significant threat to Polestar's operations despite its U.S.-based manufacturing efforts.
Polestar's new CEO, Michael Lohscheller, announced plans to grow sales by 30-35% over the next three years and achieve positive free cash flow by 2027, delaying the company's previous break-even goal.
The company aims to pivot from direct-to-consumer sales to a dealership-based model while introducing new models like the Polestar 7, a compact SUV to be manufactured in Europe, targeting global markets.
Polestar faces challenges in securing financing and maintaining support from its Chinese parent company, Geely, as competition intensifies in the EV market and geopolitical tensions rise.