Polestar Slashes Full-Year Delivery Forecast After U.S. Market Ban

Electric vehicle manufacturer Polestar on Thursday cut its full-year delivery forecast, citing its forced exit from the U.S. market amid a government crackdown on vehicles with links to China. The news sent the company's shares down 5.7% in premarket trading as investors reacted to the scaled-back outlook.

Growth Outlook Slashed

Polestar now anticipates its annual volume growth will be in the low-to-mid single-digit range, a significant reduction from its previous forecast of low double-digit growth. The revision follows a June decision by the U.S. government to deny the company authorization to sell its vehicles in the country from model year 2027 onwards, making it the first automaker to be forced out under the new rules.

The company reported second-quarter revenue of $727 million, an 8% decline from the same period a year earlier. Polestar also recorded approximately $130 million in charges during the quarter tied to its U.S. restructuring, which included costs for inventory, residual value guarantees, and employee provisions.

Financial Performance

While Polestar's net loss for the second quarter narrowed by 55.3% to $459 million, this was primarily due to a large $724 million impairment charge the company took in the second quarter of the previous year. Other key performance indicators pointed to ongoing challenges:

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• Retail sales fell by 4.0% in the second quarter.
• For the first half of 2026, retail sales were nearly flat, rising just 0.4% year-over-year to 30,423 vehicles.
• Negative free cash flow for the first half widened to $1.06 billion, compared with a negative cash flow of $787 million a year earlier. This occurred even after the company raised $700 million in fresh equity during the period.

Company Outlook

Despite the headwinds, the company is moving forward with product launches, opening the order book for its new SUV 4 this week. This is the first of several refreshed models Polestar plans to introduce in the coming years.

"Working in a challenging environment, we continue to be disciplined in our execution and focused on improving the business," CEO Michael Lohscheller said in a statement. The company is scheduled to publish its third-quarter financial results on November 5.