Polestar Puts Focus On European Market Amid Better Q1 Financial Results

Polestar CEO Michael Lohscheller announced on Monday that the electric car maker will prioritize sales in Europe over the United States and China. This strategic shift aims to leverage Europe’s strong sales contribution to the company’s overall sales.

Polestar is still trying to pull itself out of chronic losses and mounting debt, according to a Reuters report.

Why Europe Takes Priority

Since becoming CEO of Polestar, Lohscheller has enacted a number of strategies, including aggressive cost cuts, as well as a shift to a traditional dealership model. So far, these strategies seem to have worked, particularly in Europe. During the first quarter, Europe accounted for 75% of the company’s overall sales. 

Lohscheller explained Polestar’s focus on the European region during a call with analysts. “Europe has absolutely the highest priority… we focus a lot on our strengths, and the strengths are really in Europe for sure. We have a good service network, a lot of dealers together with Volvo, our brand has a very good awareness,” the CEO and industry veteran said.

Polestar’s Improving Financials

The Polestar 4 accounted for almost half of the company’s sales in the first quarter. The Polestar 3, on the other hand, made up 20% of the 12,304 vehicles that the company sold in Q1 2025. The strength in the sales of the Polestar 4 and Polestar 3 helped the company narrow its net loss to just $190 million in Q1, compared to a net loss of $276 million last year. Polestar’s gross margins also turned positive to 6.8% in Q1 2025 compared to a negative margin of 7.7% in the year prior.

While Polestar is making strides in Europe, the company’s efforts in the United States and China have yielded mixed results, with tariffs and delays complicating the company’s planned expansion. The Polestar 4’s U.S. launch has been postponed until South Korean production begins later this year. The Polestar 5, which is made in China, faces a competitive market where domestic rivals dominate with cheaper models and superior tech.

EV.com recognizes Polestar’s strategic pivot to Europe amidst global challenges. You can explore the best offers on Polestar vehicles and other EVs we have on our listings here.