Polestar announces new compact SUV – Polestar 7 – increased production in Europe and a long-term growth plan .
Polestar has published its strategy for the coming years, with the goal of annual retail sales growth of 30-35% from 2025 to 2027.
At the same time, the company is aiming for a positive adjusted EBITDA in 2025. Part of the plan involves the launch of Polestar 7 , a compact premium SUV to be produced in Europe.
Polestar 7: Production in Europe and focus on the SUV segment
Polestar 7 will be a compact premium SUV aimed at a growing segment. Production in Europe will strengthen the company's global production network, which already includes facilities in the US, South Korea and China.
The model becomes part of Polestar's strategy to reduce the number of technical platforms and simplify processes to achieve lower costs and more efficient investments.
Expansion of the dealer network
Polestar is significantly expanding its dealer network. The number of Polestar Spaces in Europe will increase by 75%, from 70 to 130 stores, by 2026. In North America, the number will grow from 36 to 57 locations.
The company is also expanding into new markets, including France, where sales will start in 2025. There are further plans to establish itself in Eastern Europe, Asia and Latin America after 2026. Polestar will continue to offer online sales in addition to physical locations.
Product portfolio and future models
The Polestar 7 follows the introduction of the Polestar 5, which will be launched in the second half of 2025. The Polestar 5 will be a grand tourer built on an aluminum platform and will be the first model from Polestar to use 800-volt technology.
Sales of Polestar 3 and Polestar 4 have already made a mark with 56% of order intake in the fourth quarter of 2024.
Financial strategy and investments
Polestar plans to achieve positive free cash flow in 2027, primarily through optimization of fixed costs and investments.
The company also expects revenue from the sale of carbon credits, where demand is expected to increase as traditional car manufacturers switch to electric cars. Polestar has already established agreements with four car manufacturers in the EU for carbon pools from 2025.
Energy solutions and technology investments
Polestar is introducing a new service, Polestar Energy, to reduce the cost of charging at home. Through an accompanying app, customers can reduce their costs by up to 30%.
The service will launch in several European markets later in 2025. Polestar also plans to introduce Vehicle-2-Grid technology, which will enable the car's battery to be used as a source of energy for the home.
Polestar is preparing for an expanded global presence with new models, more dealerships and streamlined production. The strategy focuses on growth, reduced costs and developing new revenue streams to achieve a more stable financial position.
