Polestar has reported a strong start to 2025, posting an impressive 84% year-over-year increase in revenue for the first quarter. The increase was driven by surging vehicle sales, helping the electric vehicle (EV) manufacturer’s gross margin turn positive at 7%, up 14.5 percentage points from Q1 2024, marking a significant milestone in the company’s path to profitability.
According to Polestar’s release on Monday, retail sales for the quarter reached 12,304 units, a 76.5% increase compared to the same period last year. The higher sales volume was largely fueled by strong demand for newer, higher-margin models, despite facing intensified market competition and challenging macroeconomic conditions.
“We continue to make great progress, transforming our commercial operations and taking steps to reduce our cost base,” said Polestar CEO Michael Lohscheller. “We are selling more cars at improved margins, resulting in revenue growth of 84%, a gross margin that is now positive, and a narrowing net loss.”
Financial Highlights
- Revenue: $608 million (up 84% YoY)
- Gross Margin: 6.8% (up from -7.7% YoY)
- Net Loss: $190 million (down 31% from $276 million YoY)
- Adjusted EBITDA Loss: $115 million (a 46% improvement from $212 million YoY)
- Cash Position: $732 million as of March 31, 2025
Polestar’s financial improvement was supported by cost-cutting measures, including headcount reductions and optimized marketing expenditures implemented in 2024. Favourable foreign exchange impacts also contributed to the better-than-expected performance.
Expanding Global Footprint
In addition to its financial progress, Polestar announced plans to launch operations in France by summer 2025, appointing Stéphane Le Guevel as Managing Director.
The company also launched Polestar Energy in 11 markets, offering enhanced home charging solutions, and reported a 25% reduction in CO2 emissions per car sold in its 2024 sustainability report.
Polestar says it will report its Q2 2025 retail sales volumes on July 10, 2025.
