Polestar is increasing its strategic focus on Europe, which currently represents close to 80% of the Company’s retail sales volumes, by continuing to expand its sales network and preparing to localise the manufacturing of future models.
This follows a decision from the U.S. Department of Commerce’s Bureau of Industry and Security to not grant Polestar an authorisation under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards.
The Company will continue to sell existing stock of Polestar 3 and Polestar 4 in the U.S. and will continue to support customers, including providing access to its service network. 94% of Polestar’s retail sales volumes in the first quarter of 2026 originated from markets outside the U.S.
Regional Strategy and European Manufacturing Plans
Michael Lohscheller, Polestar CEO, stated the automotive industry is entering a new phase based on regional dynamics. The company’s strategy reflects that, with Europe being the largest growth engine and the plan to manufacture Polestar 7 in Europe.
Record sales in 2025 and the first quarter of 2026 show strong progress, with several new market launches taking place in Europe this year. The company will also continue to invest in markets where there are opportunities to grow, including Southeast Asia, Eastern Europe, Latin America, and Canada.
Polestar Expanding Model Lineup
Lohscheller stated Polestar continues to challenge bigger, more established players thanks to impressive cars and a growing model lineup. Polestar 5 has received incredible feedback from global media, with customer deliveries set to start during the summer.
A new variant of the global bestseller Polestar 4 is planned for the second half of this year, followed by the all-new Polestar 2 in 2027, and thereafter the Polestar 7 compact SUV.