By Mackenzie Tatananni

Polestar posted its widest annual loss since going public in 2022 as the Swedish electric-vehicle maker signaled it would continue to grapple with macro instability.

Polestar's full-year loss widened to $2.36 billion from $2.05 billion in 2024, marking the largest annual loss in Polestar's history as a publicly traded company. The company attributed $1.05 billion to impairment charges.

CEO Michael Lohscheller said the company expects market conditions "to become more challenging, amid ongoing geopolitical developments." Economic volatility, starting with President Donald Trump's tariff policies and recently exacerbated by the war in Iran, have impeded Polestar's international expansion plans. The company primarily manufactures its cars in China, and faces the same supply-chain disruption risks as other automakers amid the ongoing conflict in the Middle East.

Polestar's U.S.-listed shares rose 1.5% in premarket trading Friday, indicating investors were more focused on the bright points in the print. Retail sales grew 34% in 2025 to a record 60,119 vehicles, driven partly by Polestar's ongoing retail expansion and transition to an active selling model. Revenue jumped 50% to $3.06 billion, fueled by higher sales volumes.

And while Polestar's full-year loss widened, its quarterly loss for the three months ended Dec. 31, 2025, narrowed to $799 million from $1.18 billion in the prior year. Quarterly revenue surged 54% to $887 million.

Polestar went public through a merger with a special purpose acquisition company in June 2022. The company split from parent Volvo before then. Today, it is primarily backed by China's Geely Holding, which has consistently provided financial support to offset Polestar's high cash burn.

Heading into Friday trading, Polestar has fallen 4.1% for the year and 32% over the past 12 months. The S&P 500 has gained 2.9% and 33%, respectively, over the same periods.

Meanwhile, shares of one of Polestar's strategic partners were jumping. Automotive safety company Autoliv, which is working with Polestar to build a climate-neutral car, rose 10% in premarket trading after the company backed its full-year guidance and said first-quarter numbers were stronger than expected.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 17, 2026 08:16 ET (12:16 GMT)

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