Polestar Energy: New plans include charging stations

Growth strategy confirmed, but accounts will remain in the red due to shrinking market and competition

By: Francesco Barontini

Jan 19, 2025 at 5:10am ET

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As the year drew to a close, Polestar took stock of the overall situation. The Scandinavian brand's CEO, Michael Lohscheller, said that the moment was not easy and that it would take longer than expected for the group to return to profitability.

There are two main problems: the shrinking market for electric cars and increased competition. However, even in the face of a complex scenario, the group has a number of initiatives in mind to stick to its strategy. In the meantime, however, the shares fell by almost 14% following Lohscheller's comments.

New models for growth

Polestar's situation is as follows: 2024 is on a downward trend and the company needs to do something to achieve the targets set for the three-year period 2025-2027. The aim is to increase sales by 30-35% and achieve a positive gross operating margin as early as 2025. But how?

Lohscheller explained: 'Significant changes are needed to make this respected progressive brand a successful and sustainable business. We are accelerating our retail expansion and business transformation, while adapting our future model range and significantly reducing our cost base'.

Polestar 4

To do this, Geely, which owns Polestar (as well as Volvo, Lotus and other brands) will continue to support the development of the brand and model range, which will not only see increased production of existing cars such as the Polestar 2, Polestar 3 and Polestar 4, but also the Polestar 5 and Polestar 7, a compact premium SUV that will aim to establish itself as the company's best seller.

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Not just cars

To make buying a Polestar more attractive, the company is launching the new Polestar Energy service, which offers the brand's customers smarter, more efficient and, most importantly, cheaper home charging.

Taking advantage of new charging opportunities through the app, it is estimated that the service can cut costs by around 30 per cent by exploiting new features such as V2G, among others. The service, currently active in some European markets, will be rolled out in other countries during the second half of the year.