Polestar posts 84% revenue rise and 7% gross margin in Q1 2025

Polestar reports Q1 2025 revenue up 84%, gross margin at 7%, and lower net loss; strengthened sales mix and reduced costs drive performance.

Polestar has released its financial results for the first quarter of 2025, revealing a marked step forward in its journey toward profitability. The electric performance car brand reported an 84% increase in revenue year-on-year, driven by a broader model lineup, higher sales volumes, and a strategic shift toward higher-margin vehicles.

The company delivered 12,304 cars during the quarter — a 76.4% year-on-year rise. This boost in retail activity was accompanied by notable financial improvements: gross margin turned positive at 7%, net loss narrowed to $190 million (down 31% from Q1 2024), and adjusted EBITDA improved by 46%, now standing at negative $115 million.

These improvements reflect internal changes implemented in 2024, including headcount reductions and optimized marketing spending. Exchange rate effects also played a part. Notably, the product mix now includes a larger share of higher-margin models — a trend that contributed positively, albeit under more competitive pricing conditions than a year ago.

To bolster its liquidity, Polestar secured or renewed more than $900 million in financing in Q1, including a €480 million Green Trade Finance Facility. The cash position stood at $732 million by the end of March, nearly identical to year-end 2024.

Strategic adjustments extended beyond finances. Polestar dissolved its joint venture with Xingji Meizu in China, transferring distribution rights back to itself. Despite this, the company reaffirmed its commitment to long-term operations in the Chinese market.

On the product and tech front, Polestar introduced the updated Polestar 2 and rolled out over-the-air updates — including digital key functionality — for the Polestar 3 and 4. The Polestar 4 was named "Car of the Year" in South Korea, while the Polestar 3 earned a five-star Euro NCAP safety rating, especially excelling in child occupant protection.

From a sustainability standpoint, the company reported a 25% reduction in CO₂ emissions per car sold and launched Polestar Energy — a smart home charging solution — in 11 markets.

Despite geopolitical and market challenges, Polestar’s leadership remains confident. CEO Michael Lohscheller emphasized the company’s continued transformation and commercial momentum. The next milestones include a summer 2025 launch in France, retail network expansion, and further work with financial partners like Geely to secure long-term funding.

Source: polestar.com