Polestar Automotive Holding UK (NASDAQ:PSNY) reported its strongest sales year to date on Friday, defying a broader slowdown in the electric vehicle sector with a 34% surge in annual retail deliveries.
The Gothenburg-based automaker delivered approximately 60,119 cars in 2025, driven by a 27% year-over-year jump in the fourth quarter alone.
The performance marks a critical milestone for CEO Michael Lohscheller, who took the helm in late 2024 with a mandate to transition the company from a niche, direct-to-consumer startup into a scalable, luxury performance brand.
While U.S. demand softened due to the expiration of federal tax credits and new import tariffs, Polestar’s pivot to Europe paid dividends.
The region now accounts for roughly 78% of the company's total volume.
During the period under review, Polestar abandoned its "digital-only" roots in favor of a traditional dealer-led model, expanding its retail sales network by over 50% (excluding China) throughout the year.
Additionally, the successful launch of the Polestar 3 and Polestar 4 luxury SUVs significantly improved the company’s product mix, shifting sales toward higher-priced, higher-margin models.
The record volume comes at a vital time for the company's stock, which recently regained compliance with Nasdaq's $1 minimum bid requirement following a 1-for-30 reverse stock split in December.
While sales volumes are rising, the company continues to face a "stressed balance sheet," according to analysts, having relied on over $900 million in fresh financing from majority owner Geely and European banks to fund its loss-making operations.
Looking ahead, Polestar has set an ambitious target of 30–35% compound annual growth through 2027.
Investors are now focused on a scheduled February 18 strategy update, where management is expected to provide 2026 financial guidance and details on the upcoming Polestar 7 compact SUV, which will be the brand's first model manufactured in Europe.