Polestar experienced a strong Q2 performance, triggering a notable rally in its stock price as global deliveries rose significantly year over year. The second quarter saw Polestar achieve record deliveries, especially in markets like the U.S., China, and Europe. The company attributes growth to ramping up production of core models like Polestar 2 and new SUVs—Polestar 3 and 4—while implementing a direct sales model and expanding its global retail network.
Among its achievements, Polestar managed to meaningfully reduce inventory levels, enhancing cost-efficiency and trimming operating losses. Despite cost-cutting efforts, the company still faces margin pressure and remains unprofitable. Revenue per vehicle has been under pressure due to promotional discounts and shifting exchange rates. The investment community has responded positively, but institutional investors note that the path to profitability remains challenging.
Production ramp-up of Polestar 3 in the U.S. and Polestar 4 in South Korea is underway, reflecting the company’s strategy to diversify manufacturing and mitigate tariff risks. Polestar’s cash reserves, while sufficient to fund near-term operations, will require replenishment through financing or improved cash flow.
Polestar’s delivery surge and inventory improvements are vital milestones, yet profitability and debt remain significant hurdles. Success in new model launches, cost discipline, and market expansion will be critical to transforming momentum into sustainable performance.