For Gothenburg-based Polestar, Donald Trump's trade war comes on top of a few tough years, with delivery problems, significant losses, and a heavily pressured stock price.
In addition, the EU introduced tariffs on electric cars from China last year, where Polestar has most of its production.
However, CEO Michael Lohscheller is not worried in the long run.
The uncertainty we see right now cannot be good for business. But I think we're doing the right things and are well-positioned considering the circumstances, he says.
Volvo Cars' new-old CEO Håkan Samuelsson recently said that the US import tariffs – including 25 percent on cars – means that the company needs to increase its production in South Carolina.
The factory also manufactures one of the sister brand Polestar's models.
It makes sense to locate production in the regions where you sell. The tariffs accelerate that development, says Michael Lohscheller.
What Håkan said about the US is true for the US, but the same applies to Europe. Let's produce the cars where they're sold.
Production in South Korea
It has already been decided that Polestar 4, which is currently being built in China, will also start being produced in South Korea. The plan is then to manufacture the upcoming Polestar 7 in Europe.
A more local production also fits well into the company's climate work, emphasizes Michael Lohscheller.
Climate change hasn't disappeared, on the contrary. So while we're talking about tariffs, about Trump, and about Musk, the important issues are still the same.
Reduced footprint
According to a new report from the company, the carbon footprint per sold car has decreased by 25 percent since 2020. The goal is a completely climate-neutral production by 2040.
Sustainability is one of the cornerstones of the brand. Therefore, it's important not just to talk about it but to also show results, says Lohscheller.
But of course, we need to reduce emissions per car further, in line with increasing sales.
When it comes to sales, however, there is more to be done, he admits. Even though the first quarter saw a sales increase of 76 percent compared to the same period last year.
Last year, we sold around 44,000 cars, that's a low figure, says Polestar's CEO.
I want it to grow. But it must grow in a sustainable way to reach a volume that also helps us improve our financial situation.
Electric car manufacturer with its headquarters in Gothenburg, founded in its current form by Geely and Volvo Cars in 2017.
Polestar is listed on the Nasdaq in New York, but is largely owned by Chinese businessman Li Shufu through the companies PSD Investment (39 percent), Geely Sweden Holding (24 percent), and Volvo Cars (18 percent).
Here are the company's current car models manufactured today:
Polestar 2: China (in a Volvo Cars factory).
Polestar 3: China and the USA (Volvo Cars).
Polestar 4: China (Geely) and from the second half of 2025 in Busan, South Korea (Geely/Renault).
Source: Polestar.
