Polestar reported nearly unchanged revenue for the first quarter of 2026 despite record first-quarter deliveries, while its net loss more than doubled compared with the same period a year earlier.
The electric vehicle manufacturer, backed by Geely, delivered 13,126 vehicles between January and March, marking a 7% increase from the first quarter of 2025 and the strongest opening quarter in the company’s history.
Revenue for the quarter reached $633 million, compared with $632 million a year earlier. However, Polestar’s net loss widened sharply to $383 million from $166 million in the first quarter of 2025. On a per-vehicle basis, the company lost approximately $29,179 per car during the quarter.
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For the full year 2025, Polestar generated $3.06 billion in revenue while posting a net loss of $2.36 billion.
The company said stable revenue performance was supported by higher delivery volumes and favourable exchange rate movements between the US dollar and the British pound.
Those gains were partly offset by “significant price pressure,” a changing product mix and lower revenue from emissions certificates.
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Polestar recorded $21 million in emissions credit revenue during the quarter, down from $29 million a year earlier. The company’s gross margin fell from 10.3% in the first quarter of 2025 to negative 3.2% in Q1 2026.
Polestar attributed the deterioration to pricing pressure, tariffs in the United States and Europe on vehicles imported from China, lower emissions credit income and what it described as one-off impacts.
The automaker added that ongoing cost reductions and higher sales volumes of the Polestar 4 helped partially offset the weaker financial performance.
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Although the Polestar 4 generates lower average selling prices than the Polestar 3, the company said the model contributes better margins.
Michael Lohscheller, Polestar’s chief executive officer, said the company would continue focusing on cost reductions and operational efficiency improvements.
“The first quarter saw us deliver strong volume growth in a very competitive market,” Lohscheller said.
“With implemented steps to improve our cost base being offset by more challenging market conditions, we are accelerating efforts to adjust our business model, become leaner and improve manufacturing efficiencies,” he added.
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Polestar said it plans to reduce spending in areas including sales, administration and general expenses while maintaining investment levels in research and development.
The company is also expanding its retail network as it prepares additional vehicle launches. Polestar increased its number of sales locations from 159 in March 2025 to 230 outlets this year.
In the second half of 2026, the company plans to launch a new estate variant of the Polestar 4. Further future products include a next-generation Polestar 2 and the compact electric SUV Polestar 7, both scheduled for release in 2027.
