The Swedish EV maker on Wednesday reported a net loss of $1.027 billion, wider than the $268 million loss reported in the corresponding quarter of 2024, due to higher cost of sales, including a non-cash impairment expense on Polestar 3 of $739 million.
Polestar (PSNY) CEO Michael Lohscheller on Wednesday expressed optimism about the market pricing in cost increases due to the removal of tax credit on the purchase of EVs in the U.S.
“Even after the disappearance of the tax credit, the U.S. will stay an important market for us. I also do believe that eventually, the market will price for cost increases, right? I’ve never seen in many, many years in automotive that cost increases have not led to price increases,” Lohscheller said during the company’s second quarter earnings call on Wednesday. “Unfortunately, at the moment, the price environment is pretty competitive.”
President Donald Trump signed the Republican tax bill into law on the Fourth of July. Under the new law, tax credits for the purchase of electric vehicles will expire on September 30. This includes the $7,500 federal tax credit on the purchase of new EVs and the $4,000 credit on buying used ones.
The Polestar CEO noted that in the first half of the year, 77% of its sales were in Europe and 8% in the U.S. The Polestar 3 is currently the only company vehicle sold in the U.S. The firm is also planning to import the Polestar 4 from Korea to the U.S. soon after the vehicle’s production begins at a Busan factory in the second half of the year.
PSNY stock traded down 17% at the time of writing. On Stocktwits, retail sentiment around Polestar stayed within ‘extremely bullish’ territory over the past 24 hours while message volume stayed at ‘extremely high’ levels.
The Swedish EV maker reported a net loss of $1.027 billion on Wednesday, wider than the $268 million loss reported in the corresponding quarter of 2024, due to higher cost of sales, including a non-cash impairment expense of $739 million on the Polestar 3. The company also attributed the higher costs to increased U.S. trade tariffs and a challenging pricing environment.
“We will not grow in the U.S. at any cost, because the financial exposure is then too high,” the CEO said in the call.
The company withdrew its full-year guidance in late April, citing uncertainty over tariffs. On Wednesday, the firm said that it expects to resume issuing guidance and will provide further updates as appropriate after assessing the impact of international tariff and regulatory changes, among other factors.
PSNY stock is up by 5% this year but down by 19% over the past 12 months.
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