Polestar announces new target and model planned for 2025

Swedish EV manufacturer Polestar has announced an updated strategy for 2025, starting its next chapter with significant changes being made to improve operational, commercial, and financial performance.

This new business plan targets a compound annual retail sales volume growth of 30% to 35% for 2025 to 2027 and a positive adjusted EBITDA in 2025. Polestar expects to gain commercial and operational momentum, further margin, fixed costs, and working capital improvements from 2026 onwards, with a positive free cash flow after investments expected in 2027.

The Polestar 5 is based on the brand's in-house developed bonded-aluminium platform and will be the first Polestar to use 800V technology

In addition, Polestar has announced that the second half of 2025 will see the planned start of sales of the four-seater Polestar 5, which is based on the brand's in-house developed bonded-aluminium platform. It will also be the first Polestar to use 800V technology. As well as that, the brand has also announced that the Polestar 7 (no launch date as of yet) will be a premium compact SUV, with plans for it to be manufactured in Europe.

Together with its partners, Polestar plans to accelerate its shift to an active selling model, with plans to expand from 70 to 130 retail partners and 36 to 57 retail spaces in Europe and North America. However, its direct-to-consumer online sales channel will remain, giving customers a choice in how they would like to purchase their Polestar.

Polestar's new market expansion will now focus on France, with sales starting in 2025. As one of the largest and fastest growing EV markets in Europe, it seems to be a natural fit. Additional expansion across Eastern Europe, Asia, and Latin America is planned from 2026 onwards.