Polestar Automotive Holding UK (NASDAQ:PSNY) used a strategy update presentation to outline what executives described as the company’s “biggest product offensive ever,” while also detailing recent sales momentum, changes to its retail model, and ongoing sustainability initiatives.
2025 sales growth and retail expansion
CEO Michael Lohscheller said 2025 was “a very exciting year” focused on execution, adding that Polestar delivered its “best sales year ever” despite what he called a difficult environment. Lohscheller said global sales grew 34% in 2025, while sales in Europe rose “over 50%.” He also highlighted the company’s scale, noting Polestar has fewer than 2,000 employees working across 28 markets.
He also pointed to service coverage through Volvo Cars, stating Polestar customers have access to more than 1,200 service points via the Volvo service network.
Four vehicles in three years: Polestar 5, 4 variant, Polestar 2 successor, and Polestar 7
Management said Polestar has more than 230,000 cars on the road and is planning four vehicles within three years to expand into “wider segments” and “larger profit pools.” The lineup discussed included:
- Polestar 5: A four-door GT positioned as a “halo car,” with deliveries expected to start in summer 2026.
- Polestar 4: Described as the company’s global bestseller, with more than 40,000 deliveries over the last two years. Polestar announced a new variant “to launch later this year,” with deliveries expected in the fourth quarter of 2026.
- Polestar 2 successor: A “completely redesigned” next-generation model planned to launch in early 2027. Lohscheller said Polestar has delivered more than 190,000 Polestar 2 vehicles so far and called the original Polestar 2 the first car with Google built-in. He said the current model will be delivered “till the end of this year,” and added that the successor moved “from the decision to launch” in under 30 months.
- Polestar 7: A compact SUV planned for 2028. Lohscheller said compact SUVs are the fastest-growing segment globally and called the model an “entry into our brand.” He said the vehicle is planned to be built in Europe.
On Polestar 4, Lohscheller highlighted its “lowest CO2 footprint with only 19.4 tons,” and said a new variant will combine the “space of the estate” with the “versatility of an SUV,” adding that it will be produced in South Korea, designed in Sweden, and launched later this year. He said Polestar already builds the current Polestar 4 in South Korea for the North American market and described the factory as competitive on both efficiency and quality.
Design direction: evolution, more driver orientation, and some physical buttons
Head of Design Philipp Römers said Polestar is pursuing a “bold evolution rather than a revolution,” aiming to build brand awareness and consistency while making the design language more emotional and performance-oriented.
Römers said Polestar plans changes across exterior, interior, color and trim, and UI/UX. On the exterior, he said the brand will retain its “Dual Blade headlights” but integrate them differently to signal a next-generation look while remaining recognizable as a Polestar. In the cabin, he said Polestar will maintain its clean Scandinavian design but become more driver-oriented and “bring back some buttons” to balance digital and physical controls. For software, he said Polestar intends to keep the experience straightforward while adding more personalization and exploring AI-driven features.
Sustainability: emissions reductions, Mission 0 House, and climate-neutral materials
Fredrika (introduced during the event as a sustainability leader) said sustainability remains central to Polestar’s strategy and argued that global trends continue to support electrification. She said Polestar is focused on decoupling growth from climate impact and noted the company has cut emissions per sold car by 25% over the last few years, citing measures such as low-carbon metals, increased recycled materials, and improved supply chain traceability.
She provided an update on the Polestar 0 project, which she described as a “world unique” effort to research and develop climate-neutral materials and ultimately support Polestar’s goal to become climate neutral as a company by 2040. She said the project is now housed within “Mission 0 House,” a collaborative space with 11 participating companies, organizations, and institutions. She also said Polestar has secured $10 million in funding to support the work in coming years, while emphasizing the need for additional partners.
In a Q&A response about further greenhouse-gas reductions, she said Polestar has focused on aluminum and batteries, including securing renewable energy for production, and sees potential in steel and increasing recycled content. She also cited the importance of a greener charging grid and said Polestar is exploring vehicle-to-grid technology.
Outlook, technology priorities, and funding
Looking ahead, Lohscheller said Polestar will continue to grow “in a disciplined way” and is targeting “low double-digit volume growth in 2026,” alongside improvements in channel and product mix. He said the company expects to provide a financial outlook when it reports full-year 2025 results.
On technology, management reiterated its focus on software-defined vehicles and over-the-air updates. In Q&A, Lohscheller said Polestar would continue to use Android Automotive in future models. He also said autonomous driving is a key topic, referencing cooperation with Mobileye on the Polestar 4, and indicated the company would share more details closer to upcoming vehicle launches.
On liquidity and capital needs, Lohscheller said Polestar raised $700 million in two rounds in 2025 and 2026, calling it a strong signal of shareholder support. He said additional details would be provided in future events and alongside the company’s 2025 financial results.
About Polestar Automotive Holding UK (NASDAQ:PSNY)
Polestar Automotive Holding UK PLC (NASDAQ: PSNY) is an electric performance car company specializing in the design, development and manufacture of premium electric vehicles. Established as an offshoot of Volvo Car Group’s high-performance Polestar division, the company focuses on delivering a blend of Scandinavian design, advanced electric powertrains and cutting-edge connectivity features.
The roots of Polestar date back to 1996 when it operated as Volvo’s in-house tuning and motorsport arm.
