Polestar shares crashed on Wednesday more than 12% as the electric vehicle brand from China’s Geely Holding Group reported sharply wider losses in the first half of 2025.
As of press time, the stock is falling 13.16% at $1.55. Year to date, shares of the company led by Michael Loscheller have gained nearly 10%.
Operating losses in the first half of the year more than doubled to $1.10 billion, compared with $476 million a year earlier. Net loss also more than doubled to $1.19 billion from $544 million, while adjusted EBITDA narrowed 30% to a $302 million loss.
When looking at the second quarter alone, Polestar’s net loss exploded both compared to last year and the previous quarter, with losses more than six times higher than Q2 2024 and more than six times higher than Q1 over the impairment booked in the second quarter.
Amid the release of its financial results, Polestar said it “continues to work closely with Geely Group on securing new equity and debt funding.”
Revenue rose 56.5% year on year to $1.42 billion for the six months ended June 30, the company said on Wednesday, over 18,049 and 12,240 EVs sold in the first two quarters of the year, respectively.
However, cost of sales more than doubled to $2.13 billion, driven in part by a $724 million impairment charge. Excluding impairments, other costs of sales rose 50.4% to $1.40bn.
The group posted a gross loss of $703 million, compared with a $23 million loss in the prior year.
Gross margin deteriorated to minus 49.4% from minus 2.6%.
Selling, general and administrative expenses edged down 4.3% to $431 million, while research and development costs fell 28.6% to $31 million.
The company is launching its Polestar 5 model at next week’s IAA Auto Show in Munich, Germany.
Last month, Polestar became the official mobility partner and one of the main sponsors of the German football club Borussia Dortmund for the next three seasons.
Polestar announced earlier this week that it has partnered with Australian Olympic champion swimmer Kyle Chalmers.
