Polestar posted stronger revenue and vehicle sales in 2025, but its full-year loss widened as impairment charges, restructuring costs and pricing pressure continued to weigh on results.
The Swedish electric vehicle maker said revenue rose 50.3% year-over-year to $3.06bn, up from $2.03bn in 2024, driven retail sales of 60,119 vehicles, a 34% increase from a year earlier.
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The company attributed the growth to its shift to an active selling model, retail network expansion and a broader model lineup, including higher-priced Polestar 3 and Polestar 4 vehicles.
Carbon credit sales also provided a lift, increasing to $211m from $11m in 2024.
Polestar CEO Michael Lohscheller said: “2025 was a record year for Polestar, with retail sales of over 60,000 cars and revenue surpassing $3bn. Our strong commercial performance was driven by the expansion of our sales network and strength of our model line-up.”
Even so, profitability remained under pressure.
Operating loss widened 10.8% to $2bn from $1.81bn, while gross margin was negative 35.4% for the year.
Net loss increased 15% to $2.36bn.
The company said net loss was mainly driven by impairment expense, net of reversals of about $1.05bn.
Other pressures included restructuring expenses tied to headcount reductions and real-estate downsizing, lower finance income due to lower interest rates, and higher finance expense linked to increased external financing.
In the fourth quarter, however, Polestar showed signs of operational improvement.
Revenue climbed 54.3% to $887m and retail sales rose 27.3% to 15,608 vehicles.
Net loss for the quarter narrowed 32.5% to $799 million from $1.18bn a year earlier.
“In 2026, our operational focus will be on the continued expansion of our sales network, growing our sales points by a planned 20%, to coincide with the largest model offensive in our history, with four new models planned during the next three years. While we expect market conditions to become more challenging, amid ongoing geopolitical developments, we will continue to drive financial performance, building on our achievements in 2025, with an improved model mix, sustained cost reduction and financial discipline,” Lohscheller concluded.
