To address Polestar’s lackluster performance in recent years, the new CEO, Michael Lohscheller, held a press conference where he clarified his goals for 2025 and beyond. He aims to significantly improve the brand’s commercial, financial, and operational results. Lohscheller also announced the Polestar 7, the next model and the brand’s first compact SUV, which will also be the first Polestar vehicle built in Europe.
2024 was a tough year for Polestar. Volvo divested entirely from the brand, which was originally its performance division. Even Geely, which has since taken full control, considered reintegrating Polestar as a sub-brand within Volvo.
Polestar’s New Strategy
Lohscheller, who succeeded Thomas Ingenlath, introduced the brand’s strategy focused on achieving annual sales growth of 25-30% between 2025 and 2027. Positive results are expected as early as 2025, with improved margins, fixed costs, and working capital starting in 2026.
Image: Polestar
He also emphasized the need for substantial changes to make Polestar a sustainable and profitable company. These changes include expanding the retail network, overhauling the commercial approach, optimizing the future product lineup, and drastically reducing costs.
Additionally, Polestar anticipates a significant boost in revenue from selling CO2 credits, a strategy expected to have a considerable financial impact starting in 2025—similar to Tesla’s approach.
The Polestar 7 and other models
Currently, the Polestar 2 remains the brand’s only true success (for good reason), and Polestar continues to update it with improved performance and, most notably, better range. In 2024, the Polestar 4 (which has its share of issues) and the Polestar 3 finally hit the market after production delays.
In 2025, Polestar will launch the Gran Turismo Polestar 5, the first car built on an in-house platform developed in the UK. It will also be the brand’s first vehicle to feature an 800-volt architecture. This will be followed by the Polestar 6, an electric roadster.
The newly announced Polestar 7 is a premium compact SUV designed for higher volumes. It will also be the brand’s first model produced in Europe. Currently, Polestar 1, 2, and 4 are manufactured in China (with the 4 also produced in South Korea), while the Polestar 3 is made in the U.S. alongside the Volvo EX90.
Not just online sales anymore
Like Lynk & Co, Polestar is now focusing on physical retail locations after initially prioritizing an online-only sales model.
As a result, its Polestar Spaces (showrooms) will increase from 70 to 130 in Europe and from 36 to 57 in North America.
