Tesla competitor Polestar, controlled by Chinese owners, wants to produce cars in Europe for the first time. The Swedish company’s new Polestar 7 model should be produced on its home continent, Polestar boss Michael Lohscheller told the news agencies dpa-AFX and dpa. “The costs are significantly lower than shipping cars around the world,” explained the former Opel manager. Boss. “Of course it also gives us protection from tariffs.” Last year, the EU introduced punitive tariffs on electric cars made in China. So far, Polestar has produced in Asia, primarily in Chinese factories, and in the USA at Volvo. According to Lohscheller, it is not yet clear where exactly and with which partner the new car planned as an SUV will be built in Europe, and the date for the market launch has not been set either. Stationary sales are being planned. The manager wants to put the business in Europe on a broader footing overall , including in Germany and France. So far, the car manufacturer has sold its cars primarily through online orders and then delivers them through its few showrooms. In the future, Polestar cars will also be available for sale at around 300 dealers worldwide. The electric car manufacturer was going through a dry spell, both in sales and financially. In 2024, 44,851 cars were delivered to customers, 15 percent fewer than the year before. On Thursday, Polestar shares fell by more than ten percent in New York trading after the group reduced its sales estimate for 2024. For comparison: the US manufacturer Tesla, led by tech billionaire Elon Musk, delivered almost 1.79 million vehicles in 2024 to the customers. That was 19,355 fewer than in 2023.Financial independence by 2027By 2027, deliveries should grow by an average of 30 to 35 percent annually, said Polestar boss Lohscheller. This year he wants to break even in terms of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda). Polestar has undergone a major overhaul and cut around a quarter of its jobs; around 600 of the previous 3,100 employees had to leave. By 2027, the company wants to be financially on its own feet and be able to manage the investments itself. Regulation in the USA is causing problems. Income from the sale of CO₂ certificates should also contribute to the business. Lohscheller expects revenues in the three-digit million range this year.More on the topicIn the USA, Polestar has a problem. The US government decided this week that no connected cars from manufacturers under Chinese control will be allowed to be sold starting from the 2027 model year. This also applies to vehicles produced in the USA. Although Polestar builds cars in the US state of South Carolina, the majority is owned by the Chinese Geely group and its founder Li Shufu. “We will find solutions,” said Lohscheller. The USA is an important market – and we still have time.
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