New York, January 11, 2026, 12:45 EST — Market closed
- Polestar reported an increase in 2025 retail sales, driven primarily by growth in Europe
- The stock dropped in the final session even though sales rose
- Investors are now awaiting a product and financial update scheduled for Feb. 18
Polestar shares dropped roughly 5.5% to $20.99 in the final U.S. session, following the Swedish EV maker’s quarterly retail sales surge. The company also announced a strategy update scheduled for Feb. 18, which will feature a financial outlook.
The company’s sales update is crucial as Polestar pushes to prove it can grow without relying on fresh capital. With U.S. markets closed for the weekend, the key will be whether Monday triggers more selling or sparks some bargain hunting.
The environment looks tough. Stellantis announced it will drop plug-in hybrid programs in North America beginning with the 2026 model year. At the same time, battery supplier LG Energy Solution said softer EV demand deepened its quarterly losses. Reuters
Polestar has doubled down on Europe, now making up roughly 78% of its sales, CEO Michael Lohscheller told Reuters. The U.S. and China markets have grown tougher. The company moved from an online-only approach to a dealer-driven model, boosting its network outside China by 50%. It also closed all 30 of its physical stores in China. U.S. tariffs have prompted shifts in its supply chain and led to production relocating to Europe and South Korea. Mounting debt and delayed launches continue to weigh on the stock. Polestar has leaned on majority owner Geely for cash, including $900 million in loans and financing last December. Reuters
A reverse stock split reduces the number of shares outstanding and boosts the stock price by calculation; it doesn’t affect the company’s fundamental value.
The catch is that stronger sales don’t resolve the bigger questions about margins and cash flow. If demand weakens in Europe or prices drop sharply, volumes might climb even as the balance sheet tightens.
Monday’s sales figures will be closely watched to see if the market views them as evidence the Europe pivot is paying off or just another warning that the next financing update could arrive unexpectedly. New tariff news from Washington could also shift action in EV stocks.
Polestar’s next major event is its strategy update on Feb. 18 at 7 a.m. Eastern. The company has committed to revealing product updates and a financial outlook then.
