Polestar's Q2 2025 Earnings Call: Contradictions Emerge on U.S. Exposure, Liquidity, Brand Halo Strategy, and Gross Margins

The above is the analysis of the conflicting points in this earnings call

Business Commentary:

* Sales and Revenue Growth: - Polestar reported a 51% increase in retail sales, growing to over 30,000 cars, and a 56% increase in revenue to $1.4 billion for H1 2025. - Growth was attributed to strong demand for Polestar 3 and Polestar 4, which accounted for over 50% of the volume, and expansion in Europe and APAC.

• Gross Margin Challenges:
• Polestar's adjusted gross margin improved to a positive 1.4% for H1, albeit affected by a negative 5.7% adjusted gross margin in Q2.

• The decline was due to a competitive pricing environment, higher share of lower-priced Polestar 2 models, and increased tariffs on parts for U.S. assembly.

• Carbon Credit Sales:

• Polestar recorded carbon credit sales of $90 million, with a target of $100 million for 2025.

• This was facilitated by new EU pooling agreements and sales in the U.S., contributing positively to profitability.

• Operational and Strategic Initiatives:

• Polestar is implementing an active selling model, increasing sales points by 40%, and focusing on brand independence.
• These efforts are aimed at improving operational efficiency, enhancing cost discipline, and expanding market presence.