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Polestar's Revenue Soars, Losses Shrink on European Demand
17 Apr
Summary
- Fourth-quarter revenue surged 54% to $887 million.
- Net loss narrowed to $799 million from $1.18 billion.
- Company aggressively cut costs, reducing headcount by over 30%.
Polestar announced a substantial increase in fourth-quarter revenue, which climbed 54% to $887 million compared to the prior year. The electric vehicle manufacturer also reported a reduced net loss of $799 million for the three months ending December 31, a significant improvement from the $1.18 billion loss in the same period of 2024.
The company's strategic shift towards its home market in Europe has proven fruitful, with robust demand for its electric vehicle lineup. This focus comes as other key markets, including the U.S., have experienced slower performance. Economic uncertainties and geopolitical developments continue to influence Polestar's international expansion.
Polestar has implemented aggressive cost-cutting measures, including optimizing manufacturing and supply chains, which led to a notable reduction in its workforce. The company's adjusted gross margin for the fourth quarter improved to 1.9%, a substantial rise from negative 39% in 2024. Polestar ended 2025 with approximately $1.16 billion in cash.
