Polestar (Nasdaq: PSNY) has revealed an updated strategy for 2025, targeting strong profitability, significant sales growth, and an expanded product portfolio. The company is focusing on accelerating its commercial and operational performance, aiming for a 30-35% compound annual retail sales growth from 2025 to 2027, with a positive adjusted EBITDA expected in 2025.
Polestar CEO Michael Lohscheller stated, “We expect 2025 to be the strongest year in Polestar’s history.” The company is building on the momentum from its successful lineup, including the Polestar 2, Polestar 3, and Polestar 4, with plans to launch the Polestar 5 this year and introduce the Polestar 7 as a premium compact SUV produced in Europe.
Key Highlights of Polestar’s 2025 Strategy:
- Product Momentum: The Polestar 3 and Polestar 4 represent 56% of the company’s order intake in Q4 2024. Polestar’s new models, including the Polestar 5 and the Polestar 7, will continue to drive growth and establish the brand as a global leader in premium electric vehicles (EVs).
- Manufacturing Expansion: With production already in place in the USA, South Korea, and China, Polestar 7 will be manufactured in Europe to strengthen its global manufacturing network. The shift from a multi-platform approach to a single architecture will reduce complexity and costs.
- Retail Expansion: Polestar plans to increase retail spaces by 75% by 2026, expanding from 70 to 130 retail locations in Europe and North America. The company is also starting sales in France in 2025, a key market for EV growth.
- New Revenue Streams: Polestar expects a significant increase in revenue from the sales of CO2 credits, anticipating a multi-million-dollar contribution per year starting in 2025.
Product Lineup and Future Plans:
- Polestar 5: Slated for launch in the second half of 2025, the Polestar 5 is a performance-oriented 4-seat grand-tourer based on Polestar’s in-house developed bonded-aluminium platform. It will be the first Polestar to feature 800-Volt technology, further enhancing its performance and efficiency.
- Polestar 7: A new premium compact SUV planned for production in Europe, the Polestar 7 will target the fastest-growing and most profitable premium segment. The design team, led by Philipp Römers, promises the Polestar 7 will continue the brand’s ethos of progressive design and exceptional performance.
Commercial and Operational Growth:
Polestar is accelerating its shift to an active sales model, expanding its retail partnerships and increasing its retail footprint. The brand has seen strong early results, with 5.3% growth in retail sales in Q4 2024 and a 37.2% increase in order intake during the same period. This momentum, combined with the ongoing introduction of new models, positions Polestar for a successful 2025.
Polestar’s global expansion will continue with planned entry into Eastern Europe, Asia, and Latin America by 2026, alongside further growth in existing markets.
Financial Strength and Support from Geely:
Polestar is also working closely with Geely to secure additional equity and debt funding to support the company’s continued development. Daniel Donghui Li, Geely Holding Group CEO, emphasized, “Polestar remains an important global asset for Geely, and we are committed to supporting its transformation into a successful global business.”
With its ambitious strategy, strong product portfolio, and focus on operational efficiency, Polestar is well-positioned for continued growth and success in 2025 and beyond.
