Polestar Hits Record Sales as Geely Steps In With Financial Lifeline

Polestar has kicked off 2026 on a high note, revealing record-breaking sales figures for 2025. The Swedish electric vehicle (EV) manufacturer — backed by China’s Geely Holding Group and Volvo Cars — delivered 60,119 vehicles worldwide last year, up 34% from 2024.

While those numbers signal growing global demand, the impressive sales performance comes against a backdrop of mounting financial pressure, prompting Geely and European banks to extend critical financial support to keep Polestar stable and focused on growth.

Strong Momentum Driven by Europe

European Expansion Pays Off

Europe has now become the engine of Polestar’s success. The region accounted for a commanding 78% of all sales in 2025, soaring 55% from the previous year to around 46,400 units.
The UK led the charge, with sales more than doubling to nearly 17,000 vehicles — a sign that British drivers are increasingly drawn to the sleek Scandinavian styling of Polestar’s electric range.

“2025 has been the best year ever for Polestar, despite continued external headwinds and challenging market conditions,”
said CEO Michael Lohscheller, crediting the company’s expanding sales network and strong brand recognition.

Key Drivers: Polestar 3 & 4

Two models were primarily responsible for this surge:

Polestar 3 – The all-electric performance SUV offering premium design and long-range capability.
Polestar 4 – A sleek “SUV coupé” that combines sporty handling with cutting-edge interior tech.

These vehicles have aligned well with European consumer preferences for luxury electric SUVs, a segment still seeing strong growth despite broader EV market volatility.

Retreat from China and the US: Strategic Refocus

Polestar’s expansion focus in Europe contrasts with a retreat from other key markets. The company effectively exited the Chinese market, shutting down 30 retail locations after selling just 69 vehicles in the first half of 2025.

In the U.S., sales were also hit hard — down 56% in the second quarter — as higher import tariffs and the loss of federal tax incentives discouraged buyers. These challenges have pushed Polestar to prioritise regions where demand and profitability remain strongest.

Financial Struggles Continue Despite Growth

Lifeline from Geely and European Banks

Behind the scenes, Polestar continues to battle severe financial constraints. In December, Geely stepped up to provide a $600 million subordinated loan, joined by an additional $300 million in financing from BBVA (Spain) and Natixis (France).
Geely also converted $300 million of Polestar’s debt into equity, reinforcing its long-term commitment to the brand.

Mounting Losses and Market Pressure

Despite sales momentum, Polestar has accumulated nearly $8 billion in losses since its launch. The company reported a third-quarter net loss of $365 million, compared to $323 million a year earlier.

To stay listed on the Nasdaq, Polestar executed a 1-for-30 reverse stock split in December 2025, boosting its share price above the $1 threshold. This allowed the company to regain compliance on December 23, 2025.

Looking Ahead: Strategy Update in February

Polestar plans to host a strategic update on February 18, 2026, where it’s expected to outline:

New product launches and refreshes.
Updated financial projections.
Further details on long-term profitability targets.

Industry observers will be watching closely to see whether Polestar can balance its growth ambitions with financial stability, especially as competition intensifies across the global EV market.

The Bigger Picture: What This Means for the EV Market

Polestar’s 2025 results highlight a broader trend: Europe’s EV market remains resilient, even as demand cools in the U.S. and Asia. Consumers across the continent continue to prioritise sustainability, premium design, and performance — all key elements of Polestar’s brand identity.

But the company’s struggles also reflect a hard truth: rapid EV expansion is capital-intensive, and maintaining growth requires deep financial backing. With Geely’s renewed support, Polestar appears to have bought itself crucial breathing space for the next stage of its journey.