Swedish electric vehicle manufacturer Polestar reported a 38% increase in second-quarter sales on Thursday, supported by promotions and renewed focus on its European market.
The company sold an estimated 18,049 vehicles during the quarter, up from the same period in 2023, despite inflationary pressures and growing competition from hybrid and gasoline vehicles.
“We’ve delivered another strong quarter of growth, in increasingly challenging market and geopolitical conditions,” Polestar CEO Michael Lohscheller said in a statement.
The company has begun shifting its strategy to emphasize Europe, where demand has remained resilient even as the broader industry faces high interest rates and economic uncertainty.
While Polestar has aimed for growth in both the United States and China, the European market continues to dominate its sales performance.
The company is also adjusting its manufacturing footprint to mitigate risks associated with Chinese production.
Last week, Polestar announced plans to produce its upcoming Polestar 7 SUV at a Volvo Cars plant in Slovakia. The move is intended to reduce exposure to rising tariffs on Chinese-made vehicles.
The majority of Polestar’s vehicles are currently manufactured in China by parent companies Volvo Cars and Geely, which has made the brand more vulnerable to new trade restrictions compared to other European automakers.