Costs weighed on Polestar's results in the first quarter of 2026

Polestar, the electric vehicle brand of the Geely group, closed the first quarter of 2026 with revenue practically identical to that of the same period last year. However, its net losses soared, more than doubling, which reflects the challenges the company faces in a highly competitive market.

Between January and March 2026 Polestar delivered 13,126 vehicles, an increase of 7 percent compared with the same quarter of 2025. The Swedish firm thus achieved its best start to the year in its entire history. Nevertheless, despite the rise in delivery volume, revenue came in at 633 million dollars, only 1 million above the 632 million recorded a year earlier.

Net losses, by contrast, jumped from 166 million dollars in 2025 to 383 million in 2026. This equates to a loss of 29,179 dollars per vehicle delivered, a figure that remains high, although better than the average of 39,200 dollars per vehicle recorded throughout 2025.

Factors to consider

According to the company’s management, revenue held up thanks to a favorable exchange-rate effect between the dollar and the pound sterling, along with the higher number of deliveries. However, these positive factors were offset by strong pressure on prices, a less favorable sales mix—with fewer units of the Polestar 3 and more of the Polestar 4—and a notable drop in revenue from emissions certificates: 21 million compared with 29 million the previous year.

The gross margin, on the other hand, went from positive (10.3 percent) to negative (-3.2 percent), also affected by US and European tariffs on vehicles imported from China, as well as other one-off costs. Even so, the higher proportion of sales of the Polestar 4—which, although it has a lower average price, offers better margins—and cost savings helped to mitigate part of the impact.

Looking ahead, the management of Polestar is betting on reducing spending on sales, administration and general costs, while maintaining investment in R&D. Likewise, the Swedish firm is expanding its dealership network, which has grown from 159 points in March 2025 to 230 at present, with the aim of preparing the ground for the launch of new models.

In the second half of 2026 a new estate variant of the Polestar 4 will arrive, and in 2027 the new Polestar 2 and the compact SUV Polestar 7 will join it. These launches will be of great importance for the future of the brand.