Recently, rumors have resurfaced that Polestar may be withdrawing from the Chinese market. Once highly publicized, Polestar’s monthly sales in China have dropped to single digits, with its sales system crumbling and the risk of delisting looming. Polestar is seen as the “next NIO” due to its dismal sales, operational paralysis, and management chaos.
According to a report by Phoenix News Finance on August 6th, this electric luxury car brand created by Geely Holding and Volvo was initially quite high-profile upon entering the Chinese market. Not only did it benchmark against Tesla, but also boasted that “at Polestar, the sky is the limit.” However, now its situation in the Chinese market is precarious, becoming one of the most severe cases among new car-making forces.
The latest data shows that in June 2025, Polestar sold only 6 vehicles, and in March, only 1 vehicle, totaling less than 70 vehicles in the first half of the year. In comparison, NIO’s monthly sales before its collapse were about 1000 to 3000 vehicles, with the industry’s survival line having increased to delivering 20,000 vehicles per month.
Rumors of Polestar’s exit from China have been circulating since the end of 2023. Although internal sources have repeatedly denied it, stating that the brand is transitioning its sales model and is expected to complete the adjustment by the fourth quarter of 2025, doubts from the outside world persist.
According to multiple media reports, to cope with the crisis, Polestar has significantly downsized its workforce in China, nearly dissolving its sales and operational teams, with top management and HR departments withdrawing in March 2025, leading to a virtual standstill in local research and development. The online car purchase system has been shut down, and only one company-operated store remains. Car owners have provided feedback on social media that 4S stores are unmanned, and after-sales services are lacking.
Furthermore, since 2020, Polestar has issued multiple recalls due to issues such as electrical systems, braking software, and rear-view camera images, leading to a decline in safety reputation.
Established in 2017, Polestar was responsible for R&D design by a European team and production in China. Volvo had previously invested over $1 billion. However, in February 2024, Volvo reduced its stake to 18% and stopped financial support. Geely Holding became the major shareholder, injecting $200 million through PSD Investment in June 2025, with Li Shufu owning a total of 66% of shares, and Volvo’s stake further decreased to 16%.
As of the end of 2024, Polestar had assets of $4.054 billion, liabilities of $7.383 billion, resulting in a net asset deficiency of $3.329 billion. It accumulated losses exceeding $5.1 billion from 2020 to 2024, with a $2 billion loss in 2024 alone.
The capital market’s confidence in Polestar has collapsed, with a total market value of only $2.3 billion, a decrease of over 90% from its listing in 2022. Nordea Bank in Sweden has adjusted its valuation of Polestar to 0 Swedish Krona, indicating the risk of delisting.
Phoenix News Finance stated that the competition in the new energy vehicle market is intense, and even if products, costs, and marketing are optimized, companies still struggle to secure success. Polestar’s plight is not only due to external competition but also internal issues.
In the eight years since its establishment, Polestar’s positioning for its four models has fluctuated between ultra-luxury and mainstream markets. The initial model, Polestar 1, was a high-performance plug-in hybrid coupe priced at 1.45 million yuan, limited to 500 vehicles; Polestar 2 was priced at 299,800 yuan, shifting towards the mainstream market; Polestar 3 was priced at nearly 700,000 yuan, re-entering the luxury field; and Polestar 4 returned to the 300,000 yuan price range. The significant changes in positioning have increased consumer confusion.
Additionally, multiple media outlets have criticized Polestar for its lack of product competitiveness. It relied on Volvo’s fuel vehicle platform for electrification, resulting in low space utilization, inadequate battery life, and lack of recognition for intelligence features. The core R&D authority remains in Sweden, causing a lag in product localization and an inability to meet Chinese market demands.
Polestar frequently changed executives in a bid for breakthroughs, with seven changes in the China region’s leadership within eight years, with an average tenure of less than 1.5 years.
In June 2023, Polestar and Meizu jointly established a technology company, Polestar Technology, to accelerate localization. In January 2025, Meizu’s CEO, Su Jing, took over as the chairman of Polestar Technology, but the effects were not significant.
In April 2025, Polestar announced the termination of the joint venture with Meizu, reclaiming the distribution rights in the Chinese market, and planning to transfer some assets at a fair value to ensure the restart of sales and service.
However, as of now, Polestar’s rescue efforts in China have shown no significant progress. The future of Polestar is filled with uncertainties.