Polestar Secures $800M Investment, Shifts Production to Korea to Counter Tariff Impact

Facing a loss exceeding RMB 10 billion in 2025, Polestar has secured approximately USD 800 million in financial support from Li Shufu and Geely Holding Group. To avoid the steep tariffs on Chinese-made Polestar 2 exports to the U.S., which would raise vehicle prices by over USD 15,000, the company plans to shift production of certain models to South Korea. In 2025, Polestar achieved record global sales of more than 60,000 units; however, only 287 vehicles were sold in China. South Korea emerged as Polestar’s largest market in Asia, with locally produced Polestar 4 driving year-over-year sales growth of over 500%, reaching nearly 3,000 units. Currently, more than 80% of Polestar vehicles are still manufactured in China. Going forward, the company will leverage its Chinese supply chain while using South Korean production as a cornerstone for expanding into overseas markets. Polestar aims to achieve low double-digit sales growth in 2026, expand its sales network by 30%, and launch four new models—including the next-generation Polestar 2—between 2026 and 2028.