Electric vehicle maker Polestar reported a wider second-quarter loss on Wednesday after U.S. tariffs and intensifying price competition forced a sharp writedown on its Polestar 3 SUV.
The Sweden-based company posted a net loss of $1.03 billion for the quarter ended June 30, compared with a $268 million loss a year earlier. The result included a $739 million impairment charge that cut the recoverable value of the Polestar 3 to $25 million.
Volvo Cars, which assembles the Polestar 3 at its South Carolina plant, also booked similar charges in the quarter related to tariffs and delays for its ES90 and EX90 models.
Polestar, like other EV startups, continues to face liquidity and debt challenges as it seeks to scale. It handed over 177 cars to lenders in the first half of 2025 as collateral for financing and ended June with $719 million in cash, little changed from the prior quarter. The automaker secured a $200 million equity injection from major shareholder PSD Investment in June.
Sales trends remain weak. Polestar’s U.S. deliveries fell 56% in the quarter as buyers opted for hybrids and gasoline models, while discounts in Europe have met with limited success. The company joins a crowded EV market where some peers, including Fisker and Lordstown, have collapsed, while others survive on shareholder backing.
