Polestar’s third-quarter and year-to-date numbers are in, and the Swedish-Chinese EV brand finds itself in a familiar position: growing fast, bleeding cash even faster, and trying to convince the world it’s built for the long haul.

CEO Michael Lohscheller framed Q3 as a step forward in the company’s ongoing “commercial transformation,” pointing to a rapidly expanding dealer network and fresh retail spaces popping up across Polestar’s 28 global markets. Those efforts helped drive a 49-percent revenue jump in the first nine months of 2025, a rare bright spot in what continues to be a bruising year for the EV sector.

But as is often the case in the electric-car gold rush, revenue growth is only part of the story.

Sales Up, Prices Pressured, Margins… Ouch

For January through September, Polestar estimates it delivered 44,482 vehicles, a 36.5-percent YoY increase thanks to a stronger lineup and especially robust demand in Europe. The lion’s share of that growth comes from the company’s newer, higher-priced metal—the Polestar 3 SUV and the sleek Polestar 4 coupe-SUV.

Those pricier models helped push revenue to $2.171 billion, nearly 50 percent higher than last year. The company also leaned heavily on carbon-credit deals, booking $123 million in the first nine months alone (up from essentially zero a year earlier).

But margins tell a less rosy story. Polestar reported a negative gross margin of –34.5 percent, a result heavily distorted by a massive $739 million non-cash impairment charge on the Polestar 3 taken in Q2. Strip out that hit and adjusted gross margin still sits at –1.8 percent, slightly better than last year but still on the wrong side of zero.

Pricing pressure, rising tariffs, and residual-value guarantees in North America all conspired to drag margins underwater, and inventory write-downs didn’t help.

Quarterly Snapshot: Q3 2025

Polestar moved 14,192 vehicles in Q3, up 13.1 percent YoY, once again buoyed by Europe. Revenue climbed to $748 million, up 36 percent, with carbon-credit sales adding $33 million to the pot.

But the margin picture deteriorated again: gross margin fell to –6.1 percent (from –1.2 percent last year), and adjusted gross margin to –7.9 percent. A combination of tariffs, mix shifts, and residual-value adjustments kept the bottom line firmly in the red.

Net loss for the quarter widened slightly to $365 million, and adjusted EBITDA clocked in at –$259 million, down from –$176 million a year earlier despite ongoing cuts to marketing and headcount.

Still, Polestar entered Q4 with $995 million in cash, boosted by a $200 million PIPE investment from Geely chairman Eric Li’s investment arm and more than $3.2 billion in renewed and secured financing facilities.

A Dealer Network That’s Actually Growing

While many EV startups are shrinking their retail footprint, Polestar is sprinting in the opposite direction. The company added 11 new retail partners in Q3, bringing its global total outside of China to 141 active partners. Its hybrid agency/dealer model—once a philosophical war zone in Europe—seems to have found its legs.

Polestar also continues to lean on the global service network of Volvo Cars, giving it far wider aftersales reach than most young EV brands could dream of.

Product and Brand Highlights: The Stuff Enthusiasts Actually Care About

The financials may be grim, but on the product front Polestar is working hard to maintain momentum:

• Polestar 5, the sleek electric grand tourer, made its public debut at IAA Mobility in Munich.
• The Polestar 4 snagged a Red Dot “Best of the Best” design award and will become the first car to integrate Google Maps’ live lane guidance.
• The Polestar 3 not only set a Guinness World Record for the longest journey by an electric SUV on a single charge, but also received a major 800-volt upgrade and 350-kW peak DC charging capability for the 2026 model year.
• The first-ever Polestar Festival in the UK celebrated 45,000 Polestars on British roads.
• The company also announced a reduction in R&D staff, part of a strategic shift toward using more existing Geely Group architectures to save development costs.

This mix of halo moments and pragmatic belt-tightening is increasingly becoming Polestar’s brand identity: equal parts moonshot and money-saving maneuver.

A Reverse Stock Split on the Horizon

In typical EV-startup fashion, Polestar’s financial restructuring continues. The company plans to execute a reverse stock split, adjusting the ratio of its ADS shares to its ordinary shares (currently 1:1). Details are expected soon, though the move is clearly aimed at stabilizing the stock and meeting exchange-listing requirements.

The Big Picture

Polestar remains one of the more credible EV-only startups in an era where credibility is hard to come by. Backing from Geely gives it scale advantages few new brands can match, and its products remain some of the sharpest, most design-forward EVs on the road.

But the company is still losing money at a rate that would make a Silicon Valley CFO wince. Impairments, tariffs, pricing challenges, and residual-value risks continue to weigh heavily on the books.

Still, the growth is real. The cars are real. And unlike several EV hopefuls that flamed out in 2024 and 2025, Polestar appears determined not just to survive—but to evolve.

2026 will tell us whether this is the turning point the company keeps promising, or just another lap in a very long race.

Source: Polestar