Polestar has announced a revised strategy aimed at enhancing its operational, commercial, and financial performance as it enters a new phase of development. The updated business plan projects a compound annual growth rate in retail sales volume of 30-35% from 2025 to 2027, with expectations for a positive adjusted EBITDA in 2025. The company anticipates improvements in margins, fixed costs, and working capital starting in 2026, leading to positive free cash flow by 2027.
Michael Lohscheller, CEO of Polestar, emphasized the brand’s established position in the global automotive market, highlighting the importance of design and performance. He noted the necessity for significant changes to ensure the brand’s viability and success. These changes include an acceleration of retail expansion, a transformation in commercial operations, and a reduction in costs. Lohscheller expressed confidence that 2025 will be a pivotal year for the company.
Geely Holding Group, which supports Polestar’s strategy, aims to assist in securing additional funding. Geely considers Polestar a valuable asset and believes the new leadership is taking appropriate steps to evolve the brand into a successful global business.
Polestar’s product lineup is set to expand with the introduction of the Polestar 5, a four-seat grand tourer, expected to launch in the latter half of 2025. This model will feature a new bonded-aluminium platform and 800-Volt technology. Additionally, Polestar plans to produce the Polestar 7, a premium compact SUV, in Europe, reinforcing its global manufacturing network.
The company is shifting towards an active selling model, increasing its retail presence from 70 to 130 locations in Europe and North America. The direct-to-consumer online sales channel will remain available. Recent changes have already resulted in a 5.3% rise in retail sales in Q4 2024, along with a 37.2% increase in order intake.
Polestar is also expanding into the French market in 2025, targeting one of Europe’s fastest-growing EV markets. Further expansion into Eastern Europe, Asia, and Latin America is planned for 2026.
In terms of revenue, Polestar anticipates a significant increase from CO2 credit sales, projecting annual revenues in the hundreds of millions starting in 2025. The company has established an EU CO2 pool with four other manufacturers.
Additionally, Polestar is launching Polestar Energy, a service aimed at making home charging more efficient and cost-effective for customers. The service is expected to reduce charging costs by up to 30% and will expand to more markets later in the year.
Finally, Polestar is enhancing the convenience of ownership through Polestar Charge, providing access to over 850,000 charging points in Europe and over 17,800 Tesla Superchargers in North America, including compatibility with NACS adaptors.