Source: Polestar

On January 16, Michael Lohscheller, Polestar’s newly appointed CEO of Swedish announced that the company will need more time to achieve profitability and has delayed plans for expansion into additional countries.

Polestar revealed the results of a strategic review, indicating that the company now expects its free cash flow to turn positive by 2027, later than the previous forecast of the end of 2025.

However, Polestar's updated business plan projects compounded annual growth rates of 30% to 50% in vehicle sales over the next three years, with adjusted core profits expected to be positive by 2025.

Michael also mentioned that after a rebound in market demand for Polestar vehicles in the fourth quarter of 2024, the current order volume for Polestar cars has increased by approximately 37%.

"In my view, based on the current market environment, this is clearly strong growth," Lohscheller said.

Polestar is planning to launch the Polestar 5, a performance four-door hatchback in the second half of 2025, set to compete against the Porsche Taycan, Tesla Model S, Lucid Air, and Mercedes-Benz EQS..

Source: Autocar

Additionally, Lohscheller stated that Polestar plans to produce the Polestar 7 compact SUV in Europe and is currently finalizing partnerships.

Producing cars in Europe will shield Polestar from the EU's import tariffs on Chinese-made electric vehicles.

Polestar has been grappling with delays in launching new models. The automotive market has become increasingly competitive, particularly in China, a key growth market for Polestar.

The company is also attempting to recover from a challenging year. In 2024, the sales performance of the Polestar 3 and Polestar 4 was disappointing, and Polestar faced market pressure from price discounts.

Polestar's full-year revenue for 2024 is expected to decline by approximately 15% year-on-year, contrary to its previous forecast of flat revenue growth.

Source: Polestar

Polestar's CFO, Jean-Francois Mady, stated that the company's current monthly cash burn rate is between 100 and 200 million USD, which is unsustainable and unacceptable.

Additionally, Polestar is restating its financial reports from 2022 to the first half of 2024 due to errors in the balance sheet, which underreported assets and accrued liabilities.

In December 2024, Polestar secured over 800 million USD in one-year syndicated term loans from several banks, part of which will be used to repay old loans, bringing the company's current debt to approximately 4.4 billion USD.

Polestar is also seeking another one-year term loan exceeding 400 million USD, expected to be obtained later this month.

A statement from Polestar and its parent company, Geely Holding Group, indicated that they have been engaging in constructive discussions with supportive investors.

Geely Holding Group CEO Li Donghui stated, "Geely Holding Group will continue to support Polestar's development and strategic implementation, including working with Polestar to secure additional equity and debt financing."