Polestar reported improvements in its financial performance for the first half of 2026 as the company prepares to wind down vehicle sales in the U.S.
The details: Results for the EV maker’s three- and six-month periods ended June 30 showed significant improvements across several key operational metrics, according to a press release posted to Business Wire.
Retail sales totaled 30,423 cars, up 0.4% year over year from 30,289 vehicles in the comparable period, helped by growing Polestar 4 deliveries.
Gross margin improved to 8% from negative 49% in the first half of 2025, which reflected net impairment expenses recognized during the prior-year period.
Adjusted gross margin was 9%, reflecting lower revenues, U.S. restructuring measures, and one-off positive impacts in H1 2025.
Polestar’s operating loss was $629 million and net loss was $842 million for the period, improving year over year by 43% and 29%, respectively.
Despite the financial improvements, revenue fell 4% to $1.3 billion, which Polestar attributed to pricing pressure, residual value guarantee costs—mainly in the U.S.—and U.S. restructuring measures.
What they’re saying: "Following the opening of orders for Polestar 4 SUV, production has ramped up in Busan, South Korea,” said Polestar CEO Michael Lohscheller. “The first cars have been shipped from the factory and are set to be delivered to customers during the fourth quarter. The first Polestar 5s are expected to reach customers in the coming weeks - setting us up for an exciting end to the year."
Why it matters: Polestar’s improving margins and narrowing losses provide some financial momentum as its U.S. retail network prepares for the end of new-vehicle sales, making the automaker’s ability to maintain service, parts and customer support particularly important for dealers and existing owners during the transition.
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Between the lines: Polestar’s financial improvements come roughly two months after the U.S. Department of Commerce informed the automaker that it would no longer be able to sell vehicles in the U.S. beyond 2026 models due to its Chinese ties.
The decision, made under the current Connected Vehicle Rule, stems from Polestar's majority ownership by China's Geely Holding.
Polestar will continue selling existing Polestar 3 and Polestar 4 inventory in the U.S. and maintain access to its service network.
“The automotive industry is entering a new phase, based on regional dynamics,” said Lohscheller, following the Department of Commerce’s decision. “Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe."
Bottom line: Polestar’s improving financial performance provides a brighter backdrop as the EV maker shifts its growth strategy away from the U.S., but its looming exit leaves American dealers focused on managing remaining inventory and supporting existing customers as the brand redirects its resources toward markets where it can continue expanding.
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