Key Highlights
- Second-quarter deliveries for Polestar decreased 4%, totaling 17,296 units compared to 18,026 in the prior-year period
- Shares declined more than 3% in response to quarterly performance
- US Commerce Department rejected Polestar’s authorization request under Connected Vehicles Rule, effectively barring American sales beginning with 2027 models
- European market now represents 80% of Polestar’s deliveries during the initial six months as strategic emphasis transitions
- Chief Executive Michael Lohscheller recognized the American withdrawal but noted the region “was not a profitable business for us”
Polestar disclosed a 4% decline in quarterly deliveries on Thursday, triggering a stock decline exceeding 3% as market participants evaluated the figures in conjunction with the automaker’s impending American market departure.
Polestar Automotive Holding UK PLC, PSNY
The electric vehicle manufacturer delivered 17,296 units during the second quarter, representing a decrease from 18,026 vehicles in the corresponding quarter of the previous year.
This performance weakness arrives several weeks following the US Commerce Department’s rejection of Polestar’s Connected Vehicles Rule authorization request. This regulation limits vehicles featuring connected-vehicle systems with Chinese connections, and the determination effectively prohibits Polestar from American operations commencing with the 2027 model year.
Geely Holding of China maintains majority ownership of Polestar. Notably, Volvo Cars, another Geely majority-owned brand, obtained authorization one month prior — a divergence that attracted considerable scrutiny.
Chief Executive Michael Lohscheller expressed dissatisfaction regarding the American departure. However, he emphasized the US territory “was not a profitable business for us,” requiring resource commitments the organization couldn’t validate considering the regulatory determination.
Polestar plans to continue distributing its current Polestar 3 and Polestar 4 stock within America. The company will preserve its service infrastructure and maintain pre-owned vehicle sales. The prohibition generates uncertainty surrounding the Polestar 3’s trajectory, given it represents the firm’s sole American-produced vehicle.
European Market Becomes Primary Focus
With American operations concluding, Polestar has intensified its European concentration. The territory comprised 80% of the manufacturer’s deliveries throughout the first half of 2026. This geographical transformation has emerged as fundamental to the company’s navigation through challenging global EV demand conditions.
Instead of introducing completely new vehicles, Polestar has opted to update current offerings. During February, the organization unveiled refreshed iterations of its top-performing Polestar 2 and Polestar 4, scheduled for distribution throughout the upcoming year.
In May, Polestar disclosed an expanded first-quarter deficit, as competitive pricing dynamics and American tariffs compressed profitability despite enhanced delivery numbers during that timeframe.
Future Product Strategy
Polestar continues advancing its product development initiatives. CEO Lohscheller verified that initial customer deliveries of the Polestar 5 remain scheduled as planned, and that Polestar 4 SUV manufacturing has commenced, with first deliveries anticipated in the fourth quarter.
Thursday proved challenging for electric vehicle manufacturers generally. Porsche, which rivals Polestar through its Macan and Taycan offerings, similarly disclosed a first-half delivery reduction. Porsche attributed this to Chinese market challenges and the conclusion of American EV tax incentives.
For Polestar, the convergence of an American prohibition, a 4% delivery decline, and persistent financial losses maintains pressure on leadership to demonstrate the European strategy can sustain operations.
Lohscheller indicated the organization will respond to the “clear decision” from American regulators and proceed accordingly.
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