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EV maker Polestar posts wider quarterly loss on tariffs, pricing pressure
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EV maker Polestar posts wider quarterly loss on tariffs, pricing pressure
Sep 3, 2025 4:23 AM

STOCKHOLM, Sept 3 (Reuters) - Electric vehicle maker

Polestar reported a wider loss for the second quarter

on Wednesday, after U.S. tariffs and intensifying price pressure

led to an impairment charge of its flagship model, Polestar 3.

Despite strong sales in its home market of Europe, demand

for Polestar's vehicles was pressured in the U.S., a key region,

as a high cost of living and worries of a possible recession

prompted consumers to withhold spending on pricey electric cars.

The imposition of U.S. trade tariffs on global trading

partners has hit the automotive industry hard, with automakers

including Polestar scrambling to adjust supply chains and shift

manufacturing to mitigate the impact.

Polestar reported a net loss of $1.03 billion for the

quarter ended June 30, compared with a loss of $268 million a

year earlier.

The company slashed the recoverable value of the Polestar 3

to $25 million, leading to a $739 million impairment charge

recorded in cost of sales.

Polestar has implemented discounts and offers on its

vehicles in Europe to lure wary buyers as the continent faces

uncertainty due to trade tensions with the U.S.

Offers and discounts have not helped the company in the

U.S., which saw a 56% fall in second-quarter sales, as consumers

opted for cheaper hybrid and gasoline-powered vehicles over

pricey electric ones.

Other U.S. EV makers including Tesla and Rivian

also saw declines in second-quarter deliveries.

Polestar's cash position was $719 million at the end of the

second quarter, compared with cash of $732 million in the

preceding three months.

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