Polestar Automotive Holding UK PLC

Retail sales in Q1 2026 exceeded 13,100 cars, up 7% year over year. Revenue was $633 million, broadly stable year over year. Gross margin was -3.2% and adjusted gross margin was -3.3%. Net loss was $383 million versus a net loss of $166 million a year earlier, and adjusted EBITDA loss was $235 million versus $96 million in the prior period. Carbon credit sales were $21 million, compared with $29 million in Q1 2025. Cash at March 2026 was approximately $676 million, and Polestar said it was in compliance with all covenants. Looking ahead, management said carbon credit sales in 2026 are expected to be in line with 2025 for the full year, and that the company still expects the volume growth and retail expansion assumptions embedded in its February guidance. Management also said the cash burn should improve in coming quarters as seasonality turns more favorable, profitability improves and legacy CapEx declines.

Michael Lohscheller emphasized that Polestar is executing a business-model transformation centered on more retail locations, a simpler group structure, regionalized manufacturing and a leaner organization. He highlighted the record Q1 volume, strong Europe performance, and early traction for Polestar 4 in North America, while stressing that the company is responding to tougher markets by accelerating efficiency efforts. His tone was constructive but cautious, with repeated focus on challenge management rather than near-term profit recovery.

Jean-Francois Mady said the quarter’s 7% volume growth and $633 million revenue were offset by pricing pressure, tariffs, a less favorable model mix, lower carbon credit sales and negative FX impacts, leaving gross margin at -3.2% and adjusted EBITDA at a $235 million loss. He noted cash of about $676 million at quarter-end, covenant compliance, and upcoming debt-to-equity conversions of about $300 million from Geely Sweden and about $65 million from Volvo Cars. He also pointed to lower inventory, better receivables collection, reduced legacy CapEx and ongoing SG&A discipline as reasons cash burn should improve over time.

Analysts focused on ASP/mix trends, tariff mitigation, capital runway and whether retail expansion could add upside to the company’s volume guidance. Management said more retail points should gradually improve ASP and profitability because the private-sales channel tends to require less discounting, and that the network expansion and new model launches are already embedded in the existing low-double-digit growth outlook. On tariffs, management said the main mitigation strategy is regional manufacturing, citing South Carolina for the U.S., Asia production and Polestar 7 planned for Europe; they also said tariff effects are now reflected in steady-state comparisons and that carbon credit revenue should be roughly in line with 2025 for the full year.