Polestar targets profitability in 2025; Polestar 7 will be a premium compact SUV from Europe

• Targeting compound annual retail sales volume growth of 30-35% for 2025 to 2027 and positive adjusted EBITDA in 2025

• Positive free cash flow after investments expected in 2027

• • Polestar 7, a premium compact SUV, planned to be produced in Europe, strengthening global manufacturing network

Dealership expansion: 75% increase in retail spaces until 2026, with start of sales in France this year

• Continue to work with Geely on securing new equity and debt funding to finance Polestar's development and strategy implementation

GOTHENBURG, SWEDEN – Polestar (Nasdaq: PSNY) today presents an updated strategy, as the Company starts its next chapter, with significant changes being made to improve operational, commercial and financial performance.

The updated business plan targets a compound annual retail sales volume growth of 30-35% for 2025 to 2027 and a positive adjusted EBITDA in 2025. Gaining commercial and operational momentum, further margin, fixed costs and working capital improvements are expected from 2026 onwards, with a positive free cash flow after investments expected in 2027.

'We expect 2025 to be the strongest year in Polestar's history'

'We are building on the strong Polestar brand with design and performance at its core. But significant changes are needed to make this well-respected progressive brand a successful and viable business. We are speeding up our retail expansion and commercial transformation, whilst adjusting our future model line-up and significantly reducing our cost base. Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar's history.'

Daniel Donghui Li, Geely Holding Group CEO and Polestar Board Member, says: 'Geely will continue to support Polestar's development and strategy implementation, including working with Polestar to secure additional equity and debt funding. Polestar remains an important global asset for Geely and the new leadership team is taking the right actions to transform it from an iconic brand into a successful global business.'

Product portfolio: Polestar 5 to come this year, Polestar 7 planned to be produced in Europe

After the global success of Polestar 2 and ramp-up of deliveries of Polestar 3 and Polestar 4, the second half of 2025 will see the planned start of sales of Polestar 5, the performance 4-seat grand-tourer based on Polestar's in-house developed bonded-aluminium platform. It will also be the first Polestar to use 800-Volt technology.

Polestar today announces Polestar 7 will be a premium compact SUV, targeting the world's fastest growing and most profitable premium segment. With its growing portfolio, Polestar reaffirms its position as a truly global, premium EV brand.

Reinforcing the value of Polestar's asset-light business model, Polestar 7 is planned to be manufactured in Europe. With production already in place in the USA, South Korea and China, Polestar continues to strengthen its global position with a well-balanced international manufacturing network. Over time, from Polestar 7 onwards, the Company will gradually move from a multi-platform approach to one single architecture, reducing complexity, costs, and investments.

Philipp Römers, Polestar Head of Design, says: 'Polestar is known for its progressive design, with each car standing out and creating its own buzz – so too will Polestar 7. It is incredibly exciting to bring Polestar's design ethos to a new segment. Polestar 7 will be everything our customers expect from us, both in terms of design and performance.'

Active sales model and commercial expansion

Polestar is accelerating its shift to an active selling model, with new retail partners and more retail spaces. Together with its partners, Polestar plans to expand from 70 to 130 and from 36 to 57 retail spaces in Europe and North America. The established direct-to-consumer online sales channel will remain, giving customers a choice in how they want to buy their Polestar.

The changes being made to Polestar's commercial operations are already having a positive impact with a 5.3% increase in retail sales in Q4 2024 and a 37.2% increase in order intake in Q4 2024 compared to the same quarter last year. Polestar 3 and Polestar 4 represent 56% of order intake in Q4 2024, creating a strong momentum as we enter 2025.

Polestar's new market expansion will now focus on France, with sales starting in 2025. France is one of the largest and fastest growing EV markets in Europe and a natural fit for a premium brand like Polestar. Additional expansion, across Eastern Europe, Asia and Latin America, is planned from 2026 onwards.

Additional revenue streams: Increasing sales of CO2 credits

Moving forward, Polestar expects significantly increased revenue contribution from the sales of CO2 credits. With traditional OEMs struggling to transition to EVs, the demand for these credits is expected to increase in the coming years, to a three-digit million-dollar amount per year, from 2025. Polestar has already created an EU CO2 pool with four OEMs for 2025.

New customer offer: Launch of innovative energy business

Polestar is launching Polestar Energy in several key markets in Europe. This new customer offer makes home charging smarter, more efficient, and cheaper. Through the service, customers can reduce their home charging costs by up to 30%, using the Polestar Energy app. The more Polestar customers charge and support the grid through Polestar Energy, the more benefits they get. The service is to be launched in several additional markets during the second half of the year, with the launch of bidirectional charging capabilities in Polestar's line-up making the offer even more attractive.

Global access to high-performing charging services

Owning a Polestar continues to be made more convenient not just through better home charging, but also on the road. With Polestar Charge, customers in Europe have access to over 850,000 charging points, including Tesla Superchargers. In North America, customers have access to over 17,800 Tesla Superchargers with a NACS adaptor.

Photo credit: Polestar
posted on conceptcarz.com

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