Polestar, the premium electric vehicle (EV) brand jointly owned by Geely Holding and Volvo Cars, has closed its last remaining direct-sales store in China, located at L+ Plaza in Shanghai’s Qiantan area, local media Lanjinger reported on Tuesday.
The company said the closure is part of a strategic adjustment to better align with the evolving preferences of Chinese consumers. “While the Shanghai store is temporarily closed, Polestar’s other operations in China remain unaffected, and owner benefits will not be impacted,” the company said.
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According to a service representative cited in the report, Polestar now primarily operates through online sales in China.
Polestar, originally part of Volvo’s performance division, became an independent high-performance luxury EV brand in 2017. Its ownership has shifted in recent years: Volvo transferred a significant portion of its stake to Geely Holding, making Geely the largest shareholder. Earlier this year, Polestar also secured a $200 million equity investment from PSD Investment Limited, controlled by Geely founder Eric Li.
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The brand has struggled in China’s highly competitive EV market. Local media reported that Polestar sold just 69 vehicles in the first half of 2025, with no sales recorded in April or May. A report from National Business Daily in August suggested the company may fully exit China by the end of the year.