Polestar faces U.S. restructuring amid regulatory hurdles

Electric vehicle manufacturer Polestar has reported its financial results for the second quarter and first half of 2026, revealing a 43 percent decrease in operating loss to 629 million dollars compared to the previous year. Despite this improvement, driven by significant cost-cutting measures in 2025, total revenues fell by 4.4 percent to 1.36 billion dollars due to intense price competition and reduced earnings from selling green emission rights.

The company is facing significant challenges in the United States. Following a decision by the U.S. Department of Commerce to deny Polestar permits under new Connected Vehicle Rules for 2027 models, the company has initiated a restructuring. Polestar will cease new car sales in the U.S. once current inventory is sold, shifting its focus to customer service and the aftermarket. To bolster its financial position, Polestar has secured 700 million dollars in new external capital, while major owners Geely and Volvo Cars have converted loans into equity.