Polestar grew by 1 percent thanks to the United States. Sales bans prompted inventory clearance.
Polestar closed Q3 2026 with the best sales performance in its history for that period. It delivered 14,371 vehicles, but without the United States it would have seen an 8% decline. Americans bought cars discounted before the restrictions on 2027 model year vehicles took effect.
Global sales increased from 14,222 to 14,371 units, a mere 1% rise. Outside the U.S., however, Polestar delivered 12,211 cars compared to 13,256 the previous year. The American market was the key factor, where sales surged from 966 to 2,160 vehicles, an increase of about 124%.
The additional 1,194 registrations in the U.S. more than offset the 1,045 vehicle drop in other markets. Thus, this record quarter is not evidence that Polestar’s business has suddenly accelerated. It resembles more of a clearance sale before a store closes.
Discounts reached $25,000
In June, Polestar was subject to U.S. Department of Trade regulations that restrict the sale of vehicles using certain Chinese communication and driver assistance technologies. The manufacturer attempted to obtain approval for continued sales, but its request was denied. Volvo, also part of the Geely group, received an exemption.
Following this decision, Polestar began significantly overpricing cars already in the U.S. Discounts on the Polestar 4 reached up to $25,000, with reductions also applied to the Polestar 3. The company did not release sales figures by model, so it is unclear which vehicle was responsible for the largest portion of the increase.
The situation is all the more peculiar since the Polestar 3 and Volvo EX90 are produced on the same assembly line in South Carolina. In August, Polestar admitted that the decision surprised it and that it still does not understand why the two brands are treated differently.
The manufacturer can sell existing inventory and plans to maintain customer service after the sale of new cars stops. In the first nine months of 2026, it delivered 44,790 cars globally, 0.6% more than the previous year. Without the U.S., the figure would have dropped by 0.5%.
New models must replace the United States market
A wider range of vehicles is now set to drive growth. Deliveries of the Polestar 5 grand tourer have begun, and in the fourth quarter, a more practical, clearly station wagon-like version of the Polestar 4 is set to go on sale. The manufacturer promises more cargo space and a normal view through the rear window.
The successor to the Polestar 2 is set to arrive in 2027, with a compact Polestar 7 coming in 2028, while the Polestar 6 roadster remains on the roadmap. However, mere launches do not solve the profitability issue. In 2025, the company sold a record 60,119 vehicles yet still recorded an operating loss of around $1 billion. Now it must improve these figures without the market that just saved its quarter.
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