By Zaheer Kachwala
(Reuters) -Polestar paused its 2025 forecast on Wednesday as it braces for a potential hit from sweeping tariffs that threaten to roil supply chains and push up car prices, sending the U.S-listed shares of the Swedish electric-vehicle maker down 6%.
The company reported strong first-quarter sales earlier this month, but CEO Michael Lohscheller warned of a hit from American import duties as it looks to shift manufacturing to the U.S. and Europe to cut reliance on China.
U.S. President Donald Trump’s rapidly changing trade policy and levies of at least 145% on China have forced many automakers, including Stellantis, General Motors and Volvo Cars, to pull their forecasts and several others to warn of profit and revenue hits.
In response to industry pushback, Trump on Tuesday signed an executive order to soften the blow of his auto tariffs by mixing credits with relief from other levies on parts and materials.
Polestar has a manufacturing presence in South Carolina, where it makes the Polestar 3 crossover SUV. But it plans to export the Polestar 4 to the U.S. from a South Korean facility, where production will begin in the second half of the year, exposing the company to tariff impacts.
The EV maker, however, expects compounded growth in vehicles sold between 30% and 35% for this and the next two years as well as an improvement in gross margin through 2025.
Its discounts targeting disgruntled Tesla owners have helped the company drum up demand in the U.S. even as worries of a possible recession due to the tariffs weigh on consumer spending.
ANOTHER DELAY
Polestar said it has filed a notice with the U.S. Securities and Exchange Commission to delay the publication of its 2024 annual report. It now expects to file the document on or before May 14.
The company was expected to report its already-delayed fourth-quarter results in March, but that got pushed to April, leaving investors questioning its accounting measures.
Polestar’s delay in publishing its fourth-quarter results follows previous issues with financial disclosures, having to republish statements from past fiscals due to errors.
The company expects to report first-quarter results in May.
VOLVO TIES
Earlier this week, Volvo Cars CEO Hakan Samuelsson spoke about working closely with Chinese majority owner Geely and its associated brands as well as potentially collaborating with Polestar to use its upcoming factory in Slovakia.
“I think we also need to look a bit closer into possibilities to get in other Geely brands there … of course Polestar, who are also having cars in the pipeline. So that’s something we’re looking into,” Samuelsson said.
The move could aid manufacturing operations at Polestar as it burns cash to ramp up production of its vehicles amid intense competition from other EV firms, including Tesla.
Under Volvo Cars’ previous leadership, it diluted its stake in Polestar and ceased funding the EV maker — a move which worried investors as sufficient liquidity is seen as essential for expanding production.
(Reporting by Zaheer Kachwala in Bengaluru and Marie Mannes; Editing by Shilpi Majumdar)
