Polestar Aims for Major Growth as Electric Vehicle Market Evolves

GÖTEBORG, Sweden — Polestar, the Swedish electric vehicle brand, is on a mission to establish itself in the competitive automotive landscape while aiming for ambitious growth over the next few years. Under the leadership of CEO Michael Lohscheller, who took charge in October 2024, the company anticipates a sales volume increase of 30 to 35 percent by 2027.

Originally linked to racing, Polestar has evolved significantly since Volvo acquired it in 2015, redefining itself as a sustainable electric vehicle manufacturer. The launch of models such as the Polestar 1 hybrid sedan in 2017 and the all-electric Polestar 2 during the COVID-19 pandemic marked the beginning of a transformative period for the company.

With the recent introductions of the Polestar 3 and Polestar 4 battery-electric SUVs, the brand hopes to gain further traction in the electric vehicle market. “Revenue growth is important for us. Then, of course, margin improvements,” Lohscheller stated. He anticipates the company achieving profitability by 2025 and positive cash flow by 2027, while expanding its retail presence by 75 percent in the next 24 months.

Polestar’s approach is shifting from an exclusive focus on sustainability to highlighting performance. As Lohscheller noted, “EV growth is somewhat lower than expected maybe a couple of years ago.” This strategic pivot aims to attract a wider audience.

The company also plans to monetize carbon credits, following in the footsteps of other electric vehicle manufacturers. Notably, Tesla earned $2.76 billion last year from carbon credit sales.

“Each of our cars should deliver distinct Polestar driving behaviors,” Joakim Rydholm, Polestar’s head of driving dynamics, told Newsweek. He emphasized the need for vehicles that offer responsive and precise steering, a well-balanced chassis, and seamless transitions between electronic and mechanical braking systems.

Polestar’s engineering focuses on a low center of gravity and high torsional stiffness, using advanced features such as Brembo brakes and Öhlins dampers to ensure an enjoyable driving experience. This combination of mechanical precision and electronic innovation is intended to distinguish Polestar vehicles in a crowded market.

The development process at Polestar has significantly accelerated due to advances in technology. “If you want to change something as simple as a weld in a hydraulics system, it used to take weeks. Now, changes can be made in real-time with our engineers sitting in the vehicle,” Rydholm explained. Over-the-air (OTA) software updates have streamlined this process, allowing for rapid adjustments without extensive physical modifications.

Polestar is also exploring performance under extreme conditions, as demonstrated by its Arctic Circle edition models designed for rally-style driving in icy environments. These vehicles not only showcase futuristic powertrains capable of providing exhilarating experiences, but they also present an image of a brand committed to exceeding conventional expectations.

As Polestar looks ahead, it plans to expand its premium performance lineup with upcoming models Polestar 5, 6, and 7, which are already announced. These additions are expected to offer engaging and thrilling driving experiences, further solidifying Polestar’s place in the electric vehicle market.