Polestar is leaning harder on Europe to drive growth—and the strategy is showing up in the sales mix even as the Swedish EV maker’s losses deepen.
In the first quarter of 2026, Europe accounted for 78% of Polestar’s global sales, up 7% from January through March, according to Reuters. The company has been redirecting commercial resources toward the region under a strategy it calls “All about Europe,” aiming to offset softer EV demand elsewhere.
France is now part of that push. Polestar began selling in France this year after previously delaying a broader geographic expansion that had been expected to roll out across several new markets starting in 2025.
France joins a country-by-country rollout across Europe
Polestar’s entry into France adds another major market to a European footprint the brand has been building incrementally. The company had postponed its planned expansion timeline, pushing some launches into 2026 and beyond, and is now moving forward market by market.
France fits the company’s European focus: a sizable auto market with a premium-EV customer base and intensifying competition led by Tesla, BMW, and a small group of Chinese brands also trying to establish themselves.
Losses widen despite higher volumes
The stronger sales performance hasn’t eased pressure on Polestar’s finances. The company’s first-quarter 2026 results showed its quarterly loss widened, weighed down by tariffs and persistent pricing pressure, according to Reuters.
Those forces are squeezing margins and pushing back the break-even timeline management has been seeking. Polestar has reaffirmed its goal of reaching cash-flow break-even by the end of next year, but a slower EV market and an ongoing price war are complicating that plan.
Reuters also noted that Polestar’s full-year 2024 sales had already missed the company’s initial forecasts.
Tariffs and a softer global EV market drive the Europe pivot
Polestar’s Europe-heavy bet is partly defensive. With EV demand cooling in other regions—especially in Asia and North America—the company has shifted commercial emphasis to Europe, where its “All about Europe” strategy helped drive a marked sales increase in the fourth quarter of 2025, Reuters reported in January 2026.
Backed by Geely and Volvo, but exposed to China-made EV duties
Polestar remains backed by Geely and Volvo Cars, providing industrial support as it expands. But tariffs on electric vehicles manufactured in China remain a structural drag on its European margins.
As long as those tariff headwinds persist, profitability is likely to remain a moving target—even as Polestar adds new markets like France and concentrates more of its global sales in Europe.
