Electric vehicle manufacturer Polestar reported a narrower first-quarter loss on Monday, as the company’s cost-cutting measures and a focus on selling higher-priced models began to show results amid a broader slowdown in the EV market.
The Sweden-based automaker, backed by China’s Geely Holding, posted a net loss of $190 million for the three months ended March 31, down from $276 million a year earlier. The company’s gross margin improved to 6.8% from a negative 7.7% during the same period last year.
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Revenue surged 84% to $608 million in the quarter, supported by a rise in retail sales. Vehicle deliveries more than doubled, reaching 12,304 units, compared with 6,975 in the first quarter of 2023.
“We are selling more cars, at improved margins,” said CEO Michael Lohscheller. “The geopolitical environment and market conditions are challenging, but we are on the right track.”
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Polestar has been working to reduce its exposure to rising costs and tariff-related risks by implementing a range of efficiency measures. These include workforce reductions, lower manufacturing expenditures, and a more restrained marketing strategy. The company recently paused its 2025 financial forecast as it works to shift more of its manufacturing operations from China to the United States and Europe.
The move comes as the U.S. and China agreed on Monday to temporarily reduce reciprocal tariffs, easing tensions that had previously strained global trade and impacted financial markets. The agreement is expected to benefit Polestar, which had expressed concern over earlier tariffs that could have affected its production and pricing plans.
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Polestar also confirmed the end of its joint venture with Xingji Meizu, a subsidiary of Geely, in China. The partnership, established in 2023, aimed to develop an operating system for Polestar vehicles in the Chinese market. The company cited ongoing losses from the collaboration as the reason for the decision.
The quarterly results signal a potentially stabilizing phase for Polestar as it continues to navigate a competitive and evolving electric vehicle landscape. The company has not disclosed updated forward guidance but reaffirmed its focus on long-term cost management and production localization.