STOCKHOLM, Jan 9 (Reuters) - EV maker Polestar reported a sharp rise in fourth‑quarter vehicle sales on Friday, helped by its recent strategy of focusing on Europe.
The company's sales rose 27% to 15,608 vehicles sold in the fourth quarter. It sold 60,119 cars throughout the year.
Over the last year, Polestar has increasingly leaned on Europe, which now accounts for around 78% of its sales, as demand in the U.S. softened because of tariffs, the expiry of EV tax credits and intensifying competition.
Polestar has also scaled back its emphasis on online, direct‑to‑consumer sales in favor of a traditional dealer‑led model, expanding its sales network, although the company shut all of its 30 retail sites in China.
U.S. tariffs have hurt the carmaker's margins, forcing it to rejig supply chains and shift production to Europe.
"For retail sales volumes, 2025 has been the best year ever for Polestar, despite continued external headwinds and challenging market conditions," said Polestar CEO Michael Lohscheller.
Shares of the company were down around 2.2% in premarket trading.
High debt loads, persistent losses, and financial difficulties have also led to a weak share price, prompting the company to avoid a NASDAQ delisting by conducting a reverse stock split, mechanically lifting the price from below $1 to $18.
Polestar has relied heavily on Chinese carmaker and majority-owner Geely Holding to help fund its loss-making operations. In December, it got up to $900 million in fresh financing and loan deals made with Geely and two European banks.
Like Swedish automaker Volvo Cars that is also owned by Geely, Polestar increasingly depends on the Chinese group's platforms and supply chain to cut costs, reduce development spending and improve efficiency.
Polestar said it plans to provide key product updates and financial outlook on February 18.
(Reporting by Zaheer Kachwala in Bengaluru and Marie Mannes in Stockholm; Editing by Sahal Muhammed)
