Polestar recorded a wider first quarter loss in 2026, with tariffs, pricing pressure and currency movements dragging margins into negative territory despite the electric vehicle maker achieving record retail volumes.
The EV manufacturer posted a net loss of $383m for the three months to 31 March 2026, a 130.7% deterioration year-on-year (YoY).
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The adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss widened significantly to $235m from $96m.
Revenue was little changed at $633m, compared with $632m a year earlier.
While higher vehicle volumes and favourable sterling and euro movements against the dollar provided some support, these were offset by weaker pricing, a shift towards lower-margin products and reduced carbon credit revenues.
Carbon credit sales fell to $21m from $29m in the prior-year quarter.
Retail sales rose 7% YoY to 13,126 vehicles, up from 12,263 units, driven partly by stronger demand for the Polestar 4.
The company’s sales network grew to 230 points across 28 markets, from 159 a year earlier.
It plans to introduce four new vehicle models over the next three years.
On the financial side, Polestar renewed more than $1.4bn in financing facilities during the quarter, comprising a €400m ($470.8m) Green Trade Finance Facility and around $950m in working capital arrangements.
It also secured $700m in new equity from Sumitomo Mitsui Banking Corporation, Standard Chartered Bank (Hong Kong), Crédit Agricole CIB and Vida France S.A.
Separately, shareholders Geely Sweden Holdings and Volvo Cars agreed to convert approximately $639m in shareholder loans into equity, while Volvo Cars extended a remaining $726m shareholder loan to December 2031.
Polestar said it was compliant with all financing covenants as of the quarter-end, following amendments to its $950m club loan facility.
Polestar CEO Michael Lohscheller said: “The first quarter saw us deliver strong volume growth in a very competitive market. With implemented steps to improve our cost base being offset by more challenging market conditions, we are accelerating efforts to adjust our business model, become leaner and improve manufacturing efficiencies.
“Commercially, our focus remains on scaling our business by expanding our retail network, especially in Europe, with plans to reach 250 sales points globally by the end of 2026. This will help us capitalise on our growing model line-up, which targets wider, more profitable segments.”
