Polestar posted a strong increase in fourth-quarter vehicle sales, with deliveries rising 27% to 15,608 units and full-year sales reaching 60,119 vehicles.

The growth was largely driven by the company’s strategic pivot toward Europe, which now accounts for roughly 78% of global sales, as demand in the US and China has softened amid intensifying competition.

The EV maker has scaled back its online-only, direct-to-consumer strategy in favor of a more traditional dealer-led sales model, expanding its European retail network while shutting down all 30 of its physical stores in China.

US tariffs have also pressured margins, forcing Polestar to rework supply chains and shift production to Europe and South Korea.

Despite the sales momentum, Polestar continues to face financial headwinds, including high debt, persistent losses, and past launch delays.

These challenges have weighed on its share price and prompted a reverse stock split to avoid a Nasdaq delisting.

The company remains heavily dependent on its majority owner, Geely, securing $900 million in new financing in December, and is set to outline further product updates and its financial outlook on February 18.