Polestar Reports Strong Q1 2025 Financial Performance and Strategic Expansion

Polestar Automotive reported strong Q1 2025 financial performance with an 84% increase in revenue and a positive 7% gross margin. The company reduced its net loss by 31% and improved its adjusted EBITDA loss by 46% year-on-year. Polestar secured over $900 million in financing facilities and maintained a strong cash position of $732 million. The company is expanding its market presence and remains committed to growth in China.

Polestar Automotive (Nasdaq: PSNY) has reported robust financial performance for the first quarter of 2025 (Q1 2025), with revenue growth of 84% and a gross margin of 7%. The company's net loss was reduced by 31%, and its adjusted EBITDA loss improved by 46% year-on-year. Polestar secured over $900 million in financing facilities and maintained a strong cash position of $732 million.

Michael Lohscheller, Polestar CEO, noted, "We continue to make great progress, transforming our commercial operations and taking steps to reduce our cost base. We are selling more cars, at improved margins, resulting in revenue growth of 84%, a gross margin that is now positive, at 7%, and a narrowing net loss. We have a strong and growing line-up of attractive cars, with an expanding network of retail partners across key markets."

Key financial highlights for the three months ended March 31, 2025, compared to the same period in 2024, include:
- Revenue: $608 million (up 84.2% YoY)
- Gross margin: 6.8% (up 14.5ppts YoY)
- Net loss: $190 million (down 31.2% YoY)
- Adjusted EBITDA loss: $115 million (down 45.7% YoY)
- Cash balance: $732 million (down 6.6% YoY)

Polestar's retail sales totaled an estimated 12,304 cars, up 76.4% year-on-year, driven by a growing uptake of newer models. The company's gross margin at a positive 6.8% was an improvement of 14.5ppts YoY, due to a growing share of higher margin models, despite more competitive pricing compared to Q1 2024.

Polestar has secured over $900 million in financing facilities, including a Green Trade Finance Facility (TFF) with a syndicate of global banks renewed for EUR 480 million. The company continues to work closely with Geely Group on securing new equity and debt funding and maintains an acceptable debt level in relation to its loan covenants.

Polestar is expanding its market presence, with plans to launch in France in summer 2025. The business of the joint venture in China has been terminated, and distribution rights have been transferred to Polestar, while the company remains committed to the Chinese market.

Polestar 2 model year 2026 has been introduced and is available to order, with new features and technology updates. Polestar 3 achieved a five-star Euro NCAP rating, setting new standards for child occupancy protection, and Polestar 4 won 'Car of the Year' in South Korea. Digital key functionality has been added to Polestar 3 and Polestar 4, thanks to over-the-air update capability.

Polestar 2024 Annual Sustainability report published: CO2 emissions reduced by 25% per car sold. Polestar Energy launched in 11 markets, offering customers smarter, more efficient, and cheaper home charging.

Polestar will host a conference call today, May 12, 2025, at 14:00 CET, to discuss these results further.

References:
[1] https://investors.polestar.com/news-releases/news-release-details/polestar-reports-q1-2025-revenue-growth-84-and-significant-gross