January 9, 2026
Finance

Polestar Reports Record-Breaking Sales in 2025 Amidst Market Adversities

Automaker's strategic expansion and model innovation drive a 34% annual increase in retail sales

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Summary

Polestar Automotive achieved its highest-ever annual retail vehicle sales in 2025, delivering over 60,000 vehicles, a 34% jump from 2024. Despite challenging external market conditions, the company's expanded sales network and competitive model lineup facilitated significant gains across European markets. Additional revenue growth was supported by premium vehicle sales and carbon credit transactions. Notably, institutional equity investments from major financial entities are poised to support further corporate initiatives.

Key Points

Polestar recorded approximately 60,119 retail vehicle sales in 2025, up 34% from 2024 and marking its best year ever.
The company’s fourth-quarter sales rose 27% year-over-year to an estimated 15,608 vehicles.
Revenue for the first nine months of 2025 grew 48.8% to $2.17 billion, bolstered by premium model sales and $123 million in carbon credit revenue.
A $300 million equity investment from BBVA and NATIXIS was secured, featuring a put option for potential exit after three years.

Polestar Automotive (NASDAQ: PSNY) has announced that its retail vehicle sales for the full year 2025 reached approximately 60,119 units, marking a 34% increase compared to 44,851 vehicles sold in 2024. This performance represents the company's best annual sales achievement to date, highlighting a strong upward trajectory despite ongoing market headwinds.

During the fourth quarter alone, Polestar estimated retail sales of 15,608 vehicles, which reflects a 27% rise compared to the same quarter in 2024. This significant quarterly growth underscores the sustained momentum that the brand has maintained throughout the year.

Michael Lohscheller, Chief Executive Officer of Polestar, characterized the year as the firm's best for retail sales volumes, acknowledging the persistent external challenges and demanding market environment. He emphasized that the company’s ability to increase market share and outperform several established automotive brands, particularly within key European territories, can be attributed to the strategic expansion of Polestar’s sales network, which saw an increase exceeding 50% over the year. Additionally, the attractive offerings within their model lineup and diligent efforts by their team have been central to this success.

Looking at operational results for the first nine months of 2025, Polestar reported retail sales approximating 44,482 vehicles. This figure represents a 36.5% year-over-year rise relative to the 32,595 units recorded during the comparable period of the previous year. Robust demand in European markets and a compelling range of vehicle models chiefly drove these gains.

Financially, revenue for this period increased by 48.8% year-over-year, reaching $2.17 billion. The rise was supported by increased sales volumes, particularly from premium vehicles such as the Polestar 3 and Polestar 4 models, as well as $123 million in revenue from carbon credit sales. However, these gains were partially offset by downward pressure on market pricing and associated residual value costs within North America.

Further strengthening its capital position, Polestar revealed in December a $300 million equity investment from Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) and NATIXIS, with each institution contributing $150 million. This funding arrangement includes a put option agreement with a subsidiary fully owned by Geely Sweden Holdings AB, affording the investors the option to exit their stake after three years with pre-agreed returns under the terms of the equity financing.

As of the last trading check on Friday during premarket hours, shares of Polestar Automotive were trading down 0.45% at $22.10, reflecting a modest decline despite the strong sales and funding developments.

Risks
  • Continued external market headwinds and challenging conditions may impact future sales growth.
  • Market pricing pressures and residual value costs in North America partially offset revenue gains, indicating possible regional profitability concerns.
  • The equity investors’ option to exit after three years introduces potential ownership and financial stability uncertainties.
  • Growth depends on expansion and performance in key European markets, which may be susceptible to economic or competitive shifts.
Disclosure
Education only / not financial advice
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