Polestar, the Geely-owned EV manufacturer, has unveiled a new business strategy aimed at achieving significant growth targets from 2025 to 2027. The company is targeting a compound annual retail sales volume growth of 30-35% during this period. Additionally, Polestar aims to achieve positive adjusted EBITDA in 2025 and further operational improvements in the following years, including enhanced margins, lower fixed costs, and more efficient working capital management.
CEO Michael Lohscheller emphasized the company’s focus on design and performance, stating that they are accelerating retail expansion, commercial transformation, adjusting the model lineup, and reducing costs. Polestar plans to launch the Polestar 5, a performance four-seat grand-tourer, in the second half of 2025. This model will be built on an in-house developed bonded-aluminum platform and feature 800-Volt technology.
Furthermore, Polestar announced plans to introduce the Polestar 7, a premium compact SUV, which will be manufactured in Europe. The company is expanding its international manufacturing network, which currently includes facilities in the US, South Korea, and China. Polestar is also ramping up its move to an active sales model by adding new retail partners and locations.
The company has already seen positive results from these changes, with retail sales and order intake increasing in Q4 2024 compared to the previous year. Polestar 3 and Polestar 4 accounted for a significant portion of orders in Q4, setting a strong momentum for 2025. The company’s market expansion will focus on France in 2025, with plans to grow further in Eastern Europe, Asia, and Latin America from 2026.
In addition to automotive advancements, Polestar is launching Polestar Energy, a new energy business in Europe. This venture offers customers savings on home charging costs and will expand to more markets with bidirectional charging capabilities. Customers will also benefit from Polestar Charge, providing access to over 850,000 charging points in Europe, including Tesla Superchargers.
Polestar plans to collaborate with Geely to secure equity and debt funding to support its growth and strategy execution. Geely Holding Group CEO and Polestar Board Member Daniel Donghui Li expressed support for Polestar’s development and strategy implementation. He emphasized the importance of transforming Polestar into a successful global business.
Overall, Polestar’s new business plan sets ambitious growth targets and strategic initiatives to solidify its position in the EV market and expand its global presence.
