Source: Beike Finance

Polestar (NASDAQ:PSNY) has officially closed its last remaining directly operated retail store in China, located at L+ Plaza in Shanghai’s Qiantan district, as of October 13, 2025.

The closure comes against a backdrop of extremely weak local demand — in the first half of 2025, Polestar sold only 69 vehicles in China, with zero deliveries in April and May, and just six units in June.

Source: Beike Finance

Polestar has stated that the decision is part of a strategic adjustment to better align with China’s rapidly evolving consumer preferences.

Other operations in China will continue, and existing owners’ rights and services are to remain unaffected.

Going forward, Polestar will primarily rely on online sales channels for its Chinese market, allowing consumers to research models and complete purchases via its official website and digital platforms.

Polestar was founded in 2017 as a joint venture between Volvo and Geely, and expanded in China with a Chengdu production base—including a showpiece “Polestar Space” opening in Beijing in 2019. It went public via a SPAC merger in June 2022, trading under ticker PSNY.

Source: Polestar

In 2018, Polestar launched its first model, the Polestar 1, priced at 1.45 million yuan (c. $200,000), establishing the brand’s image as a premium high-performance EV maker.

By 2021, Polestar delivered 29,000 new vehicles globally, representing a 185% year-over-year increase. By the end of 2023, Polestar had 55 retail stores across China, with plans to double that number to around 120 by the end of 2024, covering major first- and second-tier cities.

However, in 2025, the company faced a string of setbacks. According to Beike Finance under The Beijing News, Polestar Era Technology (Ningbo) Co., Ltd.—a joint venture established in June 2023 between Polestar and Xingji Meizu—ceased operations in April 2025. The venture had previously been viewed as a key step in Polestar’s localization strategy.

In early August 2025, reports surfaced that Polestar would exit the Chinese market by the end of the year. On August 5, Polestar China issued a statement on its official website, saying, “Our operations in the Chinese market remain normal, and user services and dealer networks are not affected.”

By October 2025, Polestar’s last physical store in China had closed, marking a shift to an online-only sales model in the country.

The decision to close showrooms in China is reminiscent of other EV brands retreating from costly physical retail footprints amid shifting consumer behavior and thin margins.

While Polestar has had stronger performance globally — with 2025 Q3 global retail reaching 14,192 units (a 13% year-over-year increase) and 44,482 units in the first nine months (up 36%) — its China presence has become marginal.

Source: Polestar

Earlier in 2025, Polestar unveiled its Polestar 5 grand tourer in Munich, with plans to skip initial sales in China and the U.S., reinforcing a focus on Europe amid tariff and market headwinds.

Meanwhile, Polestar is expanding manufacturing further abroad, including a planned SUV production in Europe by 2028.

At present, Polestar’s China lineup includes models such as the Polestar 2, 3, and 4, with price ranges between 299,800 and 798,000 yuan (c. $41,300–$110,200) in 2025.

It remains to be seen whether the shift to online sales will rekindle momentum in China — or if Polestar will continue to scale back further in its once-priority market.

Conversion rate: 1 USD = 7.26 CNY as of October 13, 2025