Polestar on Sept. 3 announced a downgrade to its full-year volume expectations after being prevented from selling vehicles in the U.S., a development the company said will weigh on its delivery volumes and contributed to a premarket share decline of 5.7%.
The Swedish electric vehicle maker, majority-owned by China’s Geely Holding, now anticipates annual volume growth in the low-to-mid single-digit range. That replaces an earlier forecast that projected low double-digit expansion.
Background on U.S. restriction
In June, U.S. authorities declined to authorize Polestar to sell vehicles in the country from model year 2027 onwards. The decision resulted in Polestar becoming the first automaker forced out of the U.S. market under that action.
Management comment
Polestar’s chief executive, Michael Lohscheller, said the company is operating in a challenging environment and remains disciplined in execution while focusing on improving the business.
Recent financial and operating performance
- Polestar reported a net loss of $459 million, a 55.3% narrowing compared with the prior year, reflecting in part that the company had recorded a $724 million impairment in the second quarter of the prior year.
- Second-quarter revenue was $727 million, down 8% from the same period a year earlier.
- The company recorded approximately $130 million of charges in the quarter tied to its U.S. restructuring. Those charges were primarily related to inventory, residual value guarantees, and employee and supplier provisions.
- Polestar reported negative free cash flow of $1.06 billion in the first half of the year, compared with negative $787 million a year earlier, despite raising $700 million in new equity in the first six months.
- Retail sales fell 4.0% in the second quarter. For the first half of 2026, retail sales rose 0.4% year-on-year to 30,423.
Product and near-term timetable
The company opened its order book on Wednesday for the SUV 4, which it said is the first of a series of refreshed models planned for launch over the coming years. Polestar also said it expects to publish third-quarter financial results on November 5.
Market reaction and implications
Polestar’s reduced delivery outlook and the costs associated with withdrawing from the U.S. weighed on investor sentiment, reflected in the premarket share drop. The company’s financial results show narrower losses year-over-year but deeper negative free cash flow and notable restructuring costs tied to the U.S. exit.
Because the information provided is limited to the company disclosures and the U.S. authorization decision, this report does not attempt to explain regulatory rationale or project future outcomes beyond Polestar’s stated guidance and published results.