Polestar Automotive Holding UK PLC

Second-quarter retail sales were close to 17,300 cars, down 4% year on year. Q2 revenue was USD 727 million, down 8%, with gross margin at -13% and adjusted gross margin at -13%. Q2 net loss was USD 459 million versus USD 1.027 billion a year ago, and adjusted EBITDA loss was USD 286 million versus USD 206 million. For the first half of 2026, retail sales were over 30,400 cars, revenue was USD 1.36 billion, gross margin was -8%, adjusted gross margin was -9%, operating loss was USD 629 million, net loss was USD 842 million, and adjusted EBITDA loss was USD 521 million. Management updated full-year volume guidance to low- to mid-single-digit growth, citing market pressure, portfolio transition, and quality growth focus. They also said Polestar 4 SUV customer deliveries will begin in Q4 and ramp next year, while Polestar 5 deliveries are imminent.

Michael Lohscheller framed the quarter as evidence that the turnaround is working operationally, even in a very difficult EV market. He emphasized the shift to a retailer-led model, the expansion to 235 sales points across 178 retail partners in 28 markets, and the company’s focus on a leaner, more focused business. He also said Polestar is launching the strongest product portfolio in its history, with the Polestar 4 SUV and Polestar 5 as key upcoming drivers, but acknowledged intense competition, pricing pressure, and U.S. regulatory headwinds.

Jean-Francois Mady highlighted that H1 operating loss fell 43% and explained the improvement by better mix, cost discipline, and no impairment expense in H1 2026 versus a USD 724 million impairment in the prior-year period. He said the U.S. BIS decision created an estimated USD 130 million material adjustment, affecting revenue, inventory, and operating expenses, and noted that additional costs may still emerge. On liquidity, cash at June 30, 2026 was USD 888 million versus USD 1.159 billion at 2025 year-end; the decline reflected USD 850 million of operating cash outflow and USD 211 million of capex, partly offset by USD 769 million of financing inflow. He also cited roughly USD 640 million of shareholder loan conversion into equity, a Volvo Cars loan extension to December 2031, and the renewal or increase of USD 1.7 billion of banking facilities.

Analysts focused on early demand for the Polestar 4 SUV and the Polestar 5, with management saying both are getting very good feedback but are still in the early days. On 2027 volume mix, management said Polestar 4 will be the dominant volume driver, with Polestar 2 successor also playing a key role, while Polestar 5 will be more important for brand positioning than for volume. On liquidity, management said the company expects a significant reduction in cash burn in H2, helped by stronger profitability from Polestar 4 coupe and SUV and by a roughly one-third cut in capex, while noting there is nothing new to call out on additional funding. In response to questions on the U.S. BIS decision, Michael Lohscheller said Polestar will not appeal and will stop selling model year '27 vehicles in the U.S., while continuing service and used-car operations there.