Polestar Posts Record Q3 Sales Driven by U.S. Inventory Clearance Ahead of Ban
Global deliveries rose 1% year over year, but sales outside the United States declined by 8%.
Polestar reported its strongest third-quarter sales ever, with global deliveries rising 1% year over year, though this growth was entirely driven by a surge in U.S. sales that masked an 8% decline in all other markets.
What Happened
Third-quarter deliveries reached an estimated 14,371 vehicles, up from 14,222 a year earlier. While global volume edged up, sales outside the United States fell to 12,211 from 13,256. American deliveries jumped to 2,160 vehicles from 966, an increase of approximately 124%, which more than offset the decline in other regions. For the first nine months of 2026, global sales hit a record 44,790, up 0.6%, while ex-U.S. sales dropped 0.5% to 40,773.
Why It Matters
The U.S. sales spike appears to be a temporary phenomenon resulting from aggressive inventory clearance ahead of a regulatory ban. In June, Polestar was barred from selling new cars in the United States under a Department of Commerce rule prohibiting certain Chinese connectivity and driver-assistance technologies, a restriction that Volvo received an exemption from but Polestar did not. To clear stock, Polestar offered discounts of up to $25,000 on the Polestar 4 and significant deals on the Polestar 3. This surge does not indicate sustainable growth, as the company posted approximately $1 billion in operating losses in 2025 despite record annual sales. Moving forward, Polestar must rely on expanding its global lineup, including the new Polestar 5, 4 SUV, and future models like the Polestar 7, to replace the lost American volume.
The Bottom Line
Polestar's record Q3 sales were fueled by a one-time U.S. inventory liquidation ahead of a sales ban, while underlying demand in other markets contracted. The company faces the challenge of achieving profitability without the U.S. market, relying instead on new model launches scheduled for 2026 through 2028.
