Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 102

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 102
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. In markets other than the USA, Polestar has been transforming its commercial operations to complement its direct-to-customer model by establishing an active selling partner set-up since the beginning of 2024. The active selling partnerships are organized as a 'non-genuine agency model', giving selling partners autonomy and incentives to sell Polestar models. Originally, the direct-to-consumer operating model represented a contractual set-up with a service provider. This model was launched with few locations in markets other than the USA, to focus on brand consistency and customer experience. The key features of the model were deeper customer engagement and firsthand feedback from customers. Service providers displayed Polestar cars in their show rooms and offered test drives. Since early 2024, service providers are incentivized to actively sell Polestar cars at their locations by showing models, offering test drives and supporting customer to place orders online. This approach is expected to rapidly increase the sales efficiency in our network, it is intended that it will facilitate expansion of geographical coverage and customer reach in a capital-efficient manner. It is also expected to allow Polestar to target new stratum of customers such as small and medium-size enterprises, and it provides flexibility to adapt to diverse market conditions.

In addition to direct sales, Polestar intends to add wholesale channels in markets other than the USA. Polestar's plan is to establish a dual model that combines direct-to-customer and wholesale channels which is expected to support active selling of Polestar models. Through this dual model, Polestar is expected to achieve a broader market coverage while optimizing channel costs and mitigating inventory risks. By working with wholesalers, Polestar is expected to manage inventory and distribution more efficiently, while wholesalers can take ownership of the selling process by offering flexible pricing and management of inventory and distribution when they sell Polestar cars.

In the USA, we are operating a dealer-focused wholesale model. In this market, we are looking to further improve our digital capabilities, which are intended to enhance the journey for the customer to choose specifications of their future Polestar car and order it at a dealership.

Table of Contents

Polestar offers Polestar Locations, which combine Polestar Spaces, Polestar Destinations, and Polestar Test Drive Centers, where customers can see, feel and test drive Polestar's vehicles prior to making an online purchase. In line with the shift to an active selling model, Polestar is opening up Sales Points, which comprise retail locations with physical facilities (such as showrooms), actively selling Polestar cars, and pre-space activations, which represent locations with