Polestar manufactures the Polestar 3 at a factory in South Carolina, and last year warned that any sales ban “stops the operations of a legally organized US company with substantial US investment.”

“The US is an important market for us,” Kim Palmer, Polestar’s head of PR, told WIRED. Suggesting the specification of non-Chinese software and other materials, Palmer added: “We are in the advanced stages to adapt our future models to ensure that they comply with the regulation in terms of hardware, software, and suppliers.”

However, Lohscheller may have to ask the Trump administration for a dispensation to sell US-made cars in the US. said Trump antipathy to EVs well known, but unclear how much EV policy is in America influenced by Tesla CEO Elon Musk.

“It’s an unusual conflict of interest to see the CEO of Tesla in any way involved in EV policy for the entire country,” said Peter Wells, a business professor and director of the Center for Automotive Industry. Research at Cardiff University in Wales, UK. “There is a huge potential for Musk to rewrite the rules to suit Tesla’s best interests.”

If this proves to be the case, it may be difficult for Polestar to obtain a dispensation. Perhaps that is why, in his presentation, Lohscheller emphasized Polestar’s pivot to France. A Citroen trademark dispute—the company claimed the The Polestar logo is very similar to his—previously Polestar was barred from selling in the French market.

However, there is one potential snafu. Polestar buyers are not yet eligible for EV subsidies in France. “Polestar is not on the list of companies approved by France that qualify for their ecological bonus,” Wells said. “That’s not to say they can’t do it in the future, but if they don’t qualify for that scheme, they have an incentive problem.”

Lochscheller said that 2024 is a transition year for Polestar, and that now the company will return to a more traditional dealer-based sales model.

“A lot of things have to change,” said Lochscheller, “starting with sales and distribution. I call it from showing up to active sales. The company has done a great job of setting up the direct-to-consumer baseline, now the main task is to ensure that active sales through retail partners are developing.” More showrooms, then, and less reliance on online sales — old-school thinking .

“Our (retail) footprint is growing,” said Lochscheller, referring to the fact that there are now 25 Polestar showrooms in Sweden, 20 more than last year, and 20 showrooms in the UK, up from eight last year.

“By expanding dealership sales, Polestar will reach more customers, thereby increasing overall sales volume,” said Stephanie Valdez Streaty, director of industry insights for Cox Automotive, Kelley’s publisher. Blue Book vehicle valuer, told WIRED. “Customers are more likely to invest in a brand they can relate to and trust,” he said.

Wells agreed: “Polestar, under new leadership, will now finally focus on retail excellence, and will be better at bringing in profits. in a less exotic way.”

Lochscheller, Wells said, instilled in Polestar a “sense of conservatism, an attempt to cut costs, increase volumes, adopt a more traditional marketing strategy, and generate enough revenue to live.”

Polestar cars are available in 27 countries. Production of the Polestar 4 will begin in South Korea in the second half of 2025. The Polestar 5, a Porsche Taycan-rivaling GT, will go on sale later this year and will be built by the brand in first adapted EV architecture. The proposed Polestar 7 could do well in the US, Streaty said. “Developing a car in the premium compact SUV segment is a good step,” he said.

With break-even at least two years away, Polestar will likely need additional financing to break even. But Polestar—relying on support from its top Chinese owner—could take less than two years, Wells said. “The Chinese EV market is developing, but there is a lot of competition, with widespread price cutting. The risk for Polestar is that their financial support may not last. Polestar may be an extravagance too far for Geely. Market conditions are moving faster than the company’s strategic plans.”