Polestar unveils Polestar 7 compact SUV, targets profitability in 2025

Polestar (PSNY) presented an updated strategy. The updated business plan targets a compound annual retail sales volume growth of 30%-35% for 2025 to 2027 and a positive adjusted EBITDA in 2025. Gaining commercial and operational momentum, further margin, fixed costs and working capital improvements are expected from 2026 onwards, with a positive free cash flow after investments expected in 2027. After the global success of Polestar 2 and ramp-up of deliveries of Polestar 3 and Polestar 4, the second half of 2025 will see the planned start of sales of Polestar 5, the four-seat grand-tourer based on Polestar’s in-house developed bonded-aluminium platform. It will also be the first Polestar to use 800-Volt technology. Polestar announced Polestar 7 will be a compact SUV. Polestar 7 is planned to be manufactured in Europe. Together with its partners, Polestar plans to expand from 70 to 130 and from 36 to 57 retail spaces in Europe and North America. The established direct-to-consumer online sales channel will remain. The changes being made to Polestar’s commercial operations have made a 5.3% increase in retail sales in Q4 and a 37.2% increase in order intake in Q4 compared to the same quarter last year. Polestar 3 and Polestar 4 represent 56% of order intake in Q4 2024. Polestar’s new market expansion will now focus on France, with sales starting in 2025. Additional expansion, across Eastern Europe, Asia and Latin America, is planned from 2026 onwards. Moving forward, Polestar expects significantly increased revenue contribution from the sales of CO2 credits.