Polestar, the Swedish electric vehicle manufacturer majority-owned by China’s Geely Holding, reduced its full-year delivery forecast following U.S. restrictions on Chinese-linked automakers. The company now expects low-to-mid single-digit annual volume growth, down from its prior low double-digit projection.
Shares of Polestar fell 5.7% in premarket trading after the announcement. The company reported a second-quarter net loss of $459 million, a 55.3% improvement from a year earlier, which had included a $724 million impairment recorded in Q2 2025. Revenue declined 8% year-on-year to $727 million.
Polestar attributed $130 million in restructuring charges during the quarter to its U.S. exit strategy, primarily covering inventory adjustments, residual value guarantees, and employee and supplier provisions. Free cash flow remained negative at $1.06 billion in the first half of the year, compared with a negative $787 million in the same period last year. The company raised $700 million in fresh equity over the first six months.
Retail sales dipped 4.0% in the second quarter, though first-half 2026 sales rose 0.4% to 30,423 units. The company opened order books for its new SUV 4 on Wednesday, marking the first in a series of refreshed models planned for launch over the coming years.
The U.S. action against Polestar followed Washington’s broader crackdown on Chinese-linked vehicles, with the Trump administration refusing to authorize sales from model year 2027 onward. Polestar expects to publish third-quarter financial results on November 5. CEO Michael Lohscheller said the company remains focused on disciplined execution amid challenging conditions.
