STOCKHOLM, (Reuters) – Sweden’s Polestar reported a 4% fall in quarterly sales volumes on Thursday, weeks after the EV maker was handed a U.S. market ban starting in the 2027 model year, adding to its ongoing struggles to turn a profit.
In the face of uncertain global EV demand, the company has shifted its emphasis on the European market, which accounted for 80% of its sales in the first half of the year.
- The U.S. Commerce Department in June denied Polestar authorization under the Connected Vehicles Rule, which restricts cars with connected-vehicle technology tied to China.
- The decision bars the EV maker, majority-owned by China’s Geely Holding [RIC:RIC:GEELY.UL], from the U.S. market from the 2027 model year, unlike sister brand Volvo Cars which received special authorization a month earlier.
- Polestar said it will continue to sell off its existing Polestar 3 and Polestar 4 inventory in the U.S., maintain access to its service network and continue selling second-hand cars.
- The ban raises questions about the future production of the Polestar 3, its only U.S.-manufactured model.
- Second-quarter sales fell to 17,296 cars, compared with 18,026 vehicles sold in the same period last year.
- Earlier in the day, Porsche (P911_p.DE), opens new tab – a key rival with its Macan and Taycan models – reported a first-half delivery decline, citing market pressure in China and the expiration of U.S. tax credits for EVs.
- Amid tariff pressures, Polestar has opted to refresh aging models rather than launch entirely new ones. The company in February announced refreshed versions of its best-selling Polestar 2 and Polestar 4 models over the next year.
- In May, Polestar reported a bigger first-quarter loss, as pricing pressure and U.S. tariffs offset stronger sales.
- “The first customer deliveries of Polestar 5 are set to start and production of the Polestar 4 SUV has started, with first deliveries expected during the fourth quarter,” Polestar CEO Michael Lohscheller said.
Reporting by Anhata Rooprai in Bengaluru and Marie Mannes in Stockholm; Editing by Vijay Kishore
