Polestar Expects Retail Sales to Grow in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 17 2026
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Should l Buy PSNY?
The company said, "Polestar has continued to make major strides in its commercial transformation supported by accelerated retail expansion and the strength of its attractive model line-up in a challenging geopolitical and economic environment. Looking to 2026, the global environment is expected to remain highly uncertain given recent geopolitical developments. As previously indicated, retail sales volumes are expected to increase at a low double-digit rate, with a continued focus on quality revenue. The sales mix is expected to further evolve with an increasing share of Polestar 4 coupe, our best-selling model, complemented later in 2026 with the introduction of new Polestar 4 SUV variant."
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Analyst Views on PSNY
About PSNY
POLESTAR AUTOMOTIVE HOLDING UK PLC (Polestar) is a Swedish-based electric vehicle manufacturer. Company's portfolio includes Polestar 1, Polestar 2, Polestar 3, Polestar 4 and Polestar 5. Polestar products are currently available on markets across Europe, North America, China and Asia Pacific. Polestar cars are currently manufactured in two facilities in China. Polestar produces electric cars to reduce gas emmisions and develop new technologies to further minimize the carbon footprint.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Analysis of Polestar Electric Vehicles
- Sales Growth and Revenue Increase: Polestar achieved over 60,000 retail sales in 2025, marking a 34% year-over-year growth that propelled revenue up by 50% to exceed $3 billion, indicating its potential in the EV market.
- Widening Net Loss: Despite revenue growth, Polestar's net loss widened to nearly $2.4 billion, primarily impacted by $1.1 billion in impairment charges, reflecting challenges in achieving profitability.
- Cost Control and Structural Optimization: The company realized significant savings through improved product and fixed costs and workforce reduction, while enhancing its capital structure by raising capital and extending loan terms, showcasing proactive financial management.
- Market Competition and Growth Outlook: Facing fierce price wars and cooling demand in the Chinese market, Polestar's volume growth guidance for 2026 is only in the low double digits, prompting investors to carefully assess the clarity of its path to profitability.
See More
Rivian's Gross Profit Surges Amid EV Market Growth
- Market Value Surge: The electric vehicle market is projected to grow from $1.6 trillion in 2025 to over $6.5 trillion by 2030, more than tripling in value, indicating a rapid global adoption and increasing demand for EVs, positioning Rivian favorably as a young EV manufacturer in this trend.
- Profitability Reversal: Rivian achieved its first positive quarterly gross profit in Q4 2024, with a full-year gross profit of $144 million in 2025, a significant turnaround from a $1.2 billion loss in 2024, demonstrating substantial progress in cost control and production efficiency, which is attracting more investor interest.
- Cost Optimization Strategy: Through a joint venture with Volkswagen, Rivian improved per-vehicle economics, and the launch of the R2 platform reduced material costs by 45%, further enhancing the company's competitiveness and profitability through simplified vehicle architecture and manufacturing processes.
- Innovation-Driven Efficiency: The R2 platform employs zonal electrical architecture, eliminating 2.3 miles of wiring per vehicle and thousands of welds and fasteners, reducing manufacturing time and vehicle weight by approximately 2,000 lbs, these technological innovations not only enhance production efficiency but also lay the groundwork for future scalability.
See More
Rivian and Volkswagen Joint Venture Proves Valuable
- Gross Margin Improvement: Rivian achieved its first quarterly gross profit in Q4 2024 and its first full-year gross profit in 2025, indicating significant advancements in cost control and production efficiency, which are likely to attract more investor interest.
- Market Potential: The electric vehicle market is projected to grow from $1.6 trillion in 2025 to over $6.5 trillion by 2030, and Rivian is well-positioned to capitalize on this rapid growth with its R1 and newly launched R2 platforms.
- Cost Structure Optimization: Through its joint venture with Volkswagen, Rivian successfully reduced material and production costs for its R1 platform, achieving a 45% reduction in material costs with the R2 platform, thereby enhancing per-vehicle economics.
- Innovation-Driven Efficiency: The R2 platform utilizes zonal electrical architecture and consolidated electronic control units, eliminating 2.3 miles of wiring per vehicle, which significantly reduces manufacturing time and vehicle weight, thereby improving production efficiency and market competitiveness.
See More
Polestar Reports 50% Revenue Growth for 2025 Amid Record Car Sales
- Significant Revenue Growth: Polestar achieved a 50% revenue increase in 2025, selling 60,119 cars, a 34% rise from 44,851 in 2024, driven by a shift to an active selling model and retail expansion strategy, showcasing the company's strong performance in the EV market.
- Increased Net Loss: Despite substantial revenue growth, Polestar reported a net loss of $2.35 billion at the end of 2025, a 15% increase from the previous year, primarily due to soaring costs linked to higher tariffs between China and the EU, putting pressure on the company's financials.
- Cautious Future Outlook: CEO Michael Lohscheller indicated that sales growth for 2026 is expected to remain in the low double digits, and despite geopolitical uncertainties, the company plans to launch four new models over the next three years while expanding its sales network.
- Positive Market Reaction: On Stocktwits, retail sentiment around PSNY stock trended bullish, with a year-to-date stock price increase of approximately 3.5%, reflecting investor confidence in the company's future despite a complex market environment.
See More
Polestar Reports Q4 Revenue Growth of 54.3% Amid $799M Net Loss
- Significant Revenue Growth: Polestar's Q4 revenue reached $887 million, marking a 54.3% year-over-year increase that exceeded market expectations by $77.4 million, primarily driven by retail sales volumes and product mix optimization, demonstrating the company's robust sales capabilities in a competitive market environment.
- Carbon Credit Sales Contribution: The quarter saw carbon credit sales totaling $88 million, a substantial increase from $11 million a year earlier, indicating that the company's sustainability efforts are beginning to pay off while providing crucial support to overall revenue.
- Retail Sales Increase: Polestar sold 15,608 vehicles in Q4, a 27.3% increase from 12,256 vehicles a year prior, benefiting from retail network expansion and an attractive model lineup, further solidifying its market position and enhancing brand influence.
- Net Loss Situation: Despite significant revenue growth, Polestar reported a net loss of $799 million, reflecting the severe challenges the company faces amid intense market competition and pricing pressures, necessitating effective measures to improve profitability moving forward.
See More
Polestar Reports $2.4 Billion Net Loss for Fiscal 2025
- Financial Overview: Polestar reported a net loss of $2.4 billion for fiscal 2025, an increase from the previous year's loss of $2.05 billion, primarily driven by approximately $1.05 billion in impairment expenses, indicating challenges in financial management.
- Significant Revenue Growth: The company's fiscal 2025 revenue reached $3.06 billion, up 50.3% from $2.03 billion last year, reflecting enhanced sales capabilities and product appeal in the market.
- Adjusted EBITDA Improvement: The adjusted EBITDA loss was $783 million, representing a 27.5% year-on-year improvement, suggesting progress in operational efficiency and cost control measures.
- Retail Sales Growth: Retail sales volumes increased by 34%, driven by an accelerated transition to an active selling model, retail expansion, and an attractive model lineup, showcasing Polestar's growth potential in the competitive electric vehicle market.
See More
Investment Analysis of Polestar Electric Vehicles
- Sales Growth and Revenue Increase: Polestar achieved over 60,000 retail sales in 2025, marking a 34% year-over-year growth that propelled revenue up by 50% to exceed $3 billion, indicating its potential in the EV market.
- Widening Net Loss: Despite revenue growth, Polestar's net loss widened to nearly $2.4 billion, primarily impacted by $1.1 billion in impairment charges, reflecting challenges in achieving profitability.
- Cost Control and Structural Optimization: The company realized significant savings through improved product and fixed costs and workforce reduction, while enhancing its capital structure by raising capital and extending loan terms, showcasing proactive financial management.
- Market Competition and Growth Outlook: Facing fierce price wars and cooling demand in the Chinese market, Polestar's volume growth guidance for 2026 is only in the low double digits, prompting investors to carefully assess the clarity of its path to profitability.
See More
Rivian's Gross Profit Surges Amid EV Market Growth
- Market Value Surge: The electric vehicle market is projected to grow from $1.6 trillion in 2025 to over $6.5 trillion by 2030, more than tripling in value, indicating a rapid global adoption and increasing demand for EVs, positioning Rivian favorably as a young EV manufacturer in this trend.
- Profitability Reversal: Rivian achieved its first positive quarterly gross profit in Q4 2024, with a full-year gross profit of $144 million in 2025, a significant turnaround from a $1.2 billion loss in 2024, demonstrating substantial progress in cost control and production efficiency, which is attracting more investor interest.
- Cost Optimization Strategy: Through a joint venture with Volkswagen, Rivian improved per-vehicle economics, and the launch of the R2 platform reduced material costs by 45%, further enhancing the company's competitiveness and profitability through simplified vehicle architecture and manufacturing processes.
- Innovation-Driven Efficiency: The R2 platform employs zonal electrical architecture, eliminating 2.3 miles of wiring per vehicle and thousands of welds and fasteners, reducing manufacturing time and vehicle weight by approximately 2,000 lbs, these technological innovations not only enhance production efficiency but also lay the groundwork for future scalability.
See More
Rivian and Volkswagen Joint Venture Proves Valuable
- Gross Margin Improvement: Rivian achieved its first quarterly gross profit in Q4 2024 and its first full-year gross profit in 2025, indicating significant advancements in cost control and production efficiency, which are likely to attract more investor interest.
- Market Potential: The electric vehicle market is projected to grow from $1.6 trillion in 2025 to over $6.5 trillion by 2030, and Rivian is well-positioned to capitalize on this rapid growth with its R1 and newly launched R2 platforms.
- Cost Structure Optimization: Through its joint venture with Volkswagen, Rivian successfully reduced material and production costs for its R1 platform, achieving a 45% reduction in material costs with the R2 platform, thereby enhancing per-vehicle economics.
- Innovation-Driven Efficiency: The R2 platform utilizes zonal electrical architecture and consolidated electronic control units, eliminating 2.3 miles of wiring per vehicle, which significantly reduces manufacturing time and vehicle weight, thereby improving production efficiency and market competitiveness.
See More
Polestar Reports 50% Revenue Growth for 2025 Amid Record Car Sales
- Significant Revenue Growth: Polestar achieved a 50% revenue increase in 2025, selling 60,119 cars, a 34% rise from 44,851 in 2024, driven by a shift to an active selling model and retail expansion strategy, showcasing the company's strong performance in the EV market.
- Increased Net Loss: Despite substantial revenue growth, Polestar reported a net loss of $2.35 billion at the end of 2025, a 15% increase from the previous year, primarily due to soaring costs linked to higher tariffs between China and the EU, putting pressure on the company's financials.
- Cautious Future Outlook: CEO Michael Lohscheller indicated that sales growth for 2026 is expected to remain in the low double digits, and despite geopolitical uncertainties, the company plans to launch four new models over the next three years while expanding its sales network.
- Positive Market Reaction: On Stocktwits, retail sentiment around PSNY stock trended bullish, with a year-to-date stock price increase of approximately 3.5%, reflecting investor confidence in the company's future despite a complex market environment.
See More
Polestar Reports Q4 Revenue Growth of 54.3% Amid $799M Net Loss
- Significant Revenue Growth: Polestar's Q4 revenue reached $887 million, marking a 54.3% year-over-year increase that exceeded market expectations by $77.4 million, primarily driven by retail sales volumes and product mix optimization, demonstrating the company's robust sales capabilities in a competitive market environment.
- Carbon Credit Sales Contribution: The quarter saw carbon credit sales totaling $88 million, a substantial increase from $11 million a year earlier, indicating that the company's sustainability efforts are beginning to pay off while providing crucial support to overall revenue.
- Retail Sales Increase: Polestar sold 15,608 vehicles in Q4, a 27.3% increase from 12,256 vehicles a year prior, benefiting from retail network expansion and an attractive model lineup, further solidifying its market position and enhancing brand influence.
- Net Loss Situation: Despite significant revenue growth, Polestar reported a net loss of $799 million, reflecting the severe challenges the company faces amid intense market competition and pricing pressures, necessitating effective measures to improve profitability moving forward.
See More
Polestar Reports $2.4 Billion Net Loss for Fiscal 2025
- Financial Overview: Polestar reported a net loss of $2.4 billion for fiscal 2025, an increase from the previous year's loss of $2.05 billion, primarily driven by approximately $1.05 billion in impairment expenses, indicating challenges in financial management.
- Significant Revenue Growth: The company's fiscal 2025 revenue reached $3.06 billion, up 50.3% from $2.03 billion last year, reflecting enhanced sales capabilities and product appeal in the market.
- Adjusted EBITDA Improvement: The adjusted EBITDA loss was $783 million, representing a 27.5% year-on-year improvement, suggesting progress in operational efficiency and cost control measures.
- Retail Sales Growth: Retail sales volumes increased by 34%, driven by an accelerated transition to an active selling model, retail expansion, and an attractive model lineup, showcasing Polestar's growth potential in the competitive electric vehicle market.
See More
