Polestar lowers 2026 forecast amid weak first half
Image: Polestar
Polestar has lowered its sales forecast for 2026 following the results of the first half of the year. Instead of the previously expected low double-digit volume growth, the Swedish-Chinese electric vehicle manufacturer now expects growth in the low to mid-single digit percentage range only.
In the first half of the year, Polestar delivered 30,423 electric vehicles through retail channels, 0.4 percent more than in the same period last year. In the second quarter, sales declined by 4.0 percent compared to the previous year, reaching 17,296 electric vehicles.
Polestar generated $1.36 billion in revenue in the first half of the year, 4.4 percent less than a year earlier. The adjusted gross margin deteriorated from -1.4 percent to -8.5 percent. According to the company, factors that weighed on revenue included price pressure, costs related to residual value guarantees and the U.S. restructuring, as well as lower earnings from CO₂ certificates. Higher tariffs and rising raw material costs, particularly for batteries, also had a negative impact on operating expenses.
The reported operating loss decreased by 42.6 percent, from $1.096 billion to $629 million, but the year-over-year comparison is significantly influenced by asset write-downs of $724 million in the first half of 2025. The adjusted EBITDA figure also showed a negative trend, with the loss rising from $302 million to $521 million. The net loss fell from $1.193 billion to $842 million.
Withdrawal from the U.S. new vehicle business
An additional strain comes from the withdrawal from the U.S. new vehicle market. The U.S. Department of Commerce denied Polestar approval under connected-vehicle regulations for selling vehicles starting from the 2027 model year. The company estimates that the resulting negative adjustments in the first half of the year amount to around $130 million. Vehicles from earlier model years will continue to be sold from existing inventory, after which the brand plans to focus on serving existing customers in the U.S.
As of June 30, Polestar reportedly had around $888 million in liquid assets. Meanwhile, $700 million in new equity was raised during the first half of the year, and approximately $640 million in loans from Geely Sweden and Volvo Cars were converted into equity. Like Volvo, Polestar is part of the Chinese Geely Group.
Polestar has five models in its lineup: the mid-size sedan Polestar 2, the large SUV Polestar 3, the Polestar 4 Coupe, the newly introduced Polestar 4 SUV, and the luxury sedan Polestar 5. Upcoming models include the successor to the Polestar 2 (launching in 2027), the compact SUV Polestar 7 (launching in 2028), and the roadster Polestar 6. The company, whose vehicles are currently produced on two continents—North America and Asia—plans to further diversify its manufacturing locations, with the Polestar 7 set to be produced in Europe.
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About the author
Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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