Polestar Motors, which has withdrawn from the Chinese market, is still surrounded by crises. As of the closing of U.S. stocks on the last trading day last week, Polestar Motor's stock price fell 16.28%, with the stock price only about 0.5 US dollars, and delisting is imminent. According to the company's 2025 mid-term report, Polestar Automobile's operating income was US$1.423 billion, and its net profit attributable to the parent company was -US$1.193 billion, a year-on-year decrease of 119.37%. The asset-liability ratio was as high as 217.11%, and it was already insolvent.
In June this year, Li Shufu, chairman of Geely Holding Group, injected US$200 million (approximately RMB 1.42 billion) in equity investment in an attempt to "put out the fire." At that time, Polestar Auto's share price was US$1.06. For the above-mentioned "increased position" investment alone, Li Shufu's floating loss exceeded 50% within 5 months.
Not long ago, Polestar Motors just closed its last directly operated store in China and transitioned to online sales. According to the "Next Generation Automobile Research Institute", Polestar Motors currently only has one model, Polestar 4. Polestar 2 has been discontinued, Polestar 3 is not yet on the market, and the production line is still in China.
Regarding after-sales maintenance of cars, customer service explained: "You can go to officially authorized Volvo 4S stores for maintenance, but not all authorized stores can provide services. Taking Beijing as an example, there are about three to four authorized stores, and you need to make an appointment before going."
Facing delisting, after-sales becomes a problem
Looking back at the listing process of Polestar Motors, on June 24, 2022, Polestar landed on Nasdaq for the first time. In just three and a half years, Polestar Motor's share price has fallen from US$13 to approximately US$0.5, a cumulative decline of 94.4%.
What deserves more attention is that Polestar Motors is facing a delisting crisis. According to Nasdaq listing rules, the stock price of a listed company needs to be higher than $1 for 30 consecutive trading days, and Polestar Motor's stock price has been hovering below $1 for a long time. Polestar Motors must complete the rectification before April 29, 2026.
Public information shows that Polestar Motors is a joint venture between Volvo and Geely Holding Group. It once claimed to compete with Tesla and declared independence in 2017. In the past few years of the rapid expansion of the new energy vehicle market, Polestar's sales have hardly been too impressive.
In the global market, from 2021 to 2024, Polestar sales will be 29,000, 51,500, 54,626, and 44,851 vehicles respectively. Specific to the Chinese market, Polestar's highest annual sales volume in four years was only 2,048 units, and the remaining three years fluctuated around 1,500 units. Since 2025, Polestar Automobile's domestic business has almost been suspended, with only 163 vehicles sold in the first 10 months of this year.
Perhaps due to the continuous slump in sales, in October this year, Polestar Motors closed its last directly operated store in L+Plaza, Qiantan, Shanghai. The relevant person in charge of Polestar Auto stated, "Polestar is strategically adjusting its business model in China to better meet the diverse and rapidly changing consumer demands of the Chinese market. The closure of retail stores does not mean that Polestar will withdraw from the Chinese market. This adjustment will not affect any rights and interests of existing Polestar car owners, and other businesses in China have also maintained stable operations."
Currently, Polestar Auto mainly adopts an online sales model. Consumers can learn product information and complete the car purchase process through digital channels such as its official website. It is understood that Polestar Motors currently only has one model, the Polestar 4, on sale. The Polestar 2 has been discontinued. The Polestar 3 is not yet on the market, and the production line is still in China. In terms of price, there are two versions of Polestar 4. The guide price is 339,900 yuan for a single motor and 399,900 yuan for dual motors. As for the detailed transaction price, Polestar Automobile’s official customer service said it was difficult to provide it and “needs to be discussed in detail.”
Regarding after-sales maintenance of cars, customer service said: "You can go to officially authorized Volvo 4S stores for maintenance, but not all authorized stores can provide services. Taking Beijing as an example, there are about three to four authorized stores, and you need to make an appointment in advance."
In addition, according to the complaint data of the Car Quality Network, Polestar Automobile has been widely complained about quality problems and service problems. Some consumers said that the front radar of Polestar cars repeatedly gave false alarms, and it took 5 to 6 repairs to barely solve the problem, seriously affecting driving safety. What is even more worrying is that Polestar cars also have serious assembly process defects, including abnormal noises in door handles and multiple abnormal noises in the car. However, the after-sales department has refused to repair them on the grounds of "common problems".
"Polestar is the bridgehead for Geely's global layout"
In fact, there are early signs of Polestar Motor's difficulties. As early as May 2023, Polestar Motors publicly stated that it was increasing its focus on cost management, including freezing global recruitment and laying off 10% of its employees. Since this year, this adjustment has continued to accelerate, including launching headcount reduction plans for sales and operations departments, shrinking channel networks, etc.
For example, in February, it was revealed that Polestar Technology, which was jointly established by Polestar Motors and Geely's Xingji Meizu, was undergoing organizational structure adjustments. In April, Polestar Motor announced that it had signed a termination agreement with Xingji Meizu and decided to end the business operations of Polestar Technology, the joint venture between the two parties in China.
The shrinkage in business directly led to the decline in performance. From 2021 to the first half of this year, Polestar Motor's net profit attributable to its parent company has accumulated a loss of nearly US$6 billion. According to the 2025 mid-term report, Polestar Automobile's operating income was US$1.423 billion, and net profit attributable to the parent company was -US$1.193 billion, a year-on-year decrease of 119.37%. The asset-liability ratio was as high as 217.11%, and it was insolvent.
Based on this situation, Geely Group is working hard to "put out fires": on the one hand, shareholder Volvo announced that it will reduce its holdings in Polestar Motors to prevent further losses; on the other hand, Geely Group continues to "transfuse blood" for it. In mid-June, Polestar Motors announced that it had received an equity investment of US$200 million (approximately RMB 1.42 billion) from existing investor PSD Investment Limited, which is actually controlled by Li Shufu. Based on this calculation, as of the close of the U.S. stock market on November 14, with the above-mentioned "increased" investment alone, Li Shufu, chairman of Geely Holding Group, had lost more than 50% in five months.
Regarding the reason for the continuous increase in Polestar positions, in August last year, Li Donghui, CEO of Geely Holding Group, responded that this is because Polestar is the bridgehead for Geely Holding Group’s global layout and has important strategic significance for the group’s global development.
True to its word, in the sales data released by Geely Group for the first three quarters of 2025, the group exported nearly 300,000 vehicles as a whole, of which Polestar Automobile contributed 40,000 vehicles, accounting for 13%. Although the base number is small, it also shows that Polestar Motors is still a corner of Geely's overseas expansion. As for how long it will take for Polestar Motors to achieve "self-generation", Li Shufu may want to know the answer more than anyone else.