Polestar Bets on Refreshed EVs to Revive Sales

Electric vehicle maker Polestar is set to launch updated versions of its Polestar 2 and Polestar 4 models within the next year, focusing on supporting its European sales strategy. This approach prioritizes rapid, cost-effective updates over the development of all-new vehicles as the company works to stem financial losses.

A Europe-focused reset, which includes adopting a traditional dealer-led sales model, has already contributed to exceeding 60,000 retail sales for 2025. Despite these efforts, challenges such as European Union and U.S. tariffs, increased competition, and softer-than-anticipated EV demand are making the path to profitability more difficult.

Polestar anticipates low double-digit retail volume growth in 2026 and plans to expand its retail network by approximately 30% to support this objective. The company's majority owner, Geely Holding Group, remains committed to supporting Polestar's five-year plan to become a top-five global automaker by 2030.

CEO Michael Lohscheller stated that the refreshed models are expected to drive sales, reinforcing the company's premium positioning. Polestar aims to surpass 100,000 annual sales as quickly as possible. The Polestar 5 grand tourer is scheduled for delivery this summer, and a new station-wagon/SUV version of the Polestar 4 will begin shipping in the fourth quarter.

The Chinese-made new Polestar 2 is slated for a European launch early next year, but it will not be released in the U.S. due to tariffs exceeding 100%. Polestar's next completely new model, the Polestar 7 compact SUV, is anticipated in 2028 and will be manufactured at Volvo Cars' facility in Slovakia, aiming to broaden the brand's customer base and market coverage in Europe.