EV maker Polestar’s quarterly sales volumes slide amid looming US market exit

By Marie Mannes

STOCKHOLM, July 9 (Reuters) – Sweden’s Polestar reported a 4% fall in quarterly sales volumes on Thursday, weeks after a ban that effectively pushes the EV maker out of the U.S. market from the 2027 model year.

The company’s shares were down over 3%.

Last month, Polestar became the first automaker to be forced out of the U.S. under Washington’s crackdown on Chinese-linked vehicles. It was denied authorization under the Connected Vehicles Rule, while Volvo Cars secured approval, despite also being majority-owned by China’s Geely Holding.

CEO Michael Lohscheller told Reuters he was not happy about leaving the U.S., but noted it “was not a profitable business for us.”

While the U.S. market “can be really good,” he said, it also requires a minimum level of resource investment, and the company will now act on the clear decision from U.S. authorities.

The loss-making company has said it will continue to sell off its existing Polestar 3 and Polestar 4 inventory in the U.S., maintain access to its service network and continue selling second-hand cars.

In the face of uncertain global EV demand, the company has shifted its emphasis to the European market, which accounted for 80% of its sales in the first half of the year.

Polestar has also opted to refresh aging models rather than launch entirely new ones. The company in February announced refreshed versions of its best-selling Polestar 2 and Polestar 4 models over the next year.

Second-quarter sales fell to 17,296 cars, compared with 18,026 vehicles sold in the same period last year.

Earlier on Thursday, Porsche – a key rival with its Macan and Taycan models – reported a first-half delivery decline.

(Reporting by Anhata Rooprai in Bengaluru and Marie Mannes in Stockholm; Editing by Vijay Kishore)