Polestar Automotive Holding UK PLC (NASDAQ:PSNY) delivered record vehicle sales in 2025, though losses deepened due to significant impairment charges, according to its full-year results.
The electric vehicle maker sold 60,119 cars during the year, a 34% increase compared with 2024, while revenue climbed 50% to exceed $3 billion.
Despite the strong top-line performance, the company posted a net loss of $2.357 billion, up from $2.050 billion the previous year, largely driven by impairment costs of around $1.05 billion. On an adjusted basis, gross loss narrowed substantially to $22 million from $254 million in 2024, bringing the adjusted gross margin close to breakeven at negative 0.7%.
In the fourth quarter, Polestar sold 15,608 vehicles, up 27.3% year-on-year, while revenue rose 54.3% to $887 million. The company also reported a positive adjusted gross margin of 1.9% for the quarter, compared with negative 39.0% a year earlier.
Polestar continued to expand its retail footprint, increasing its sales network by 51% outside China with the addition of 71 new locations, bringing the total to 211 by the end of 2025. The company now operates in 28 markets worldwide, having entered France during the year.
Since June 2025, Polestar has bolstered its financial position through $1.2 billion in equity injections and roughly $639 million in debt-to-equity conversions, ending the year with approximately $1.2 billion in cash.
Looking ahead to 2026, the company expects low double-digit growth in vehicle volumes and plans to introduce four new models over the next three years, including the Polestar 5 in 2026. It also flagged ongoing geopolitical uncertainty and challenging market conditions as factors shaping its outlook.