Swedish electric vehicle manufacturer Polestar announced Friday that its fourth-quarter earnings showed significant improvement, with revenue climbing dramatically and financial losses decreasing substantially compared to the previous year.
The automaker reported that revenue soared 54% to reach $887 million during the final three months of 2025, ending December 31. Meanwhile, the company’s net losses decreased to $799 million, a notable improvement from the $1.18 billion loss recorded during the same period in 2024.
Over the past year, Polestar has concentrated its efforts on European markets, where consumer appetite for electric vehicles remains robust, while stepping back from other key markets including the United States where sales have been disappointing.
Global uncertainties stemming from Middle Eastern conflicts and the impact of President Donald Trump’s tariff strategies have also disrupted Polestar’s international growth objectives, reinforcing its decision to prioritize European operations.
Chief Executive Officer Michael Lohscheller warned that market conditions may become increasingly difficult “amid ongoing geopolitical developments.”
The company declined to offer detailed financial projections beyond its earlier announcement regarding retail sales volume growth, which is anticipated to rise at low-double-digit percentages.
Polestar has implemented aggressive cost-reduction measures, including workforce reductions, streamlined manufacturing operations, and supply chain restructuring. Employment levels dropped to 1,686 workers by the end of 2025, down from 2,547 employees at the conclusion of 2024.
The electric vehicle maker plans to release first-quarter financial data on May 7. Company cash reserves stood at approximately $1.16 billion at year-end 2025.
Fourth-quarter adjusted gross margin reached 1.9%, marking a substantial turnaround from the negative 39% recorded in 2024.
