Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 141

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 5
Chunk 141
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Dot, Nvidia, Luminar, and Zenseact, and Hans Pehrson among others. This combination of research and development resources allows Polestar flexibility in determining which

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technologies to develop in-house versus which to outsource to partners. Polestar believes that continued investments such as these are critical to establishing market share, attracting new customers, and becoming a profitable global electric vehicle company. In the years ended December 31, 2024, 2023 and 2022, $297.4 million, $346.4 million, and $306.0 million, respectively, were invested in new intellectual property. These investments have primarily impacted Polestar’s results of operations through amortization expense which, in the years ended December 31, 2024, 2023 and 2022, was $8.4 million, and $79.5 million, $97.2 million, respectively. The decrease seen when comparing 2024 to 2023 is primarily due to a change in the way Polestar amortizes IP used in the production of vehicles - as of the fourth quarter of 2023, intangible assets which were previously considered foundational were reassessed to be car line specific. Amortization of car line specific intangible assets is not amortized into research and development expenses but, rather, capitalized into inventories. Refer toNote 15 - Intangible assets and goodwill in the Consolidated Financial Statements included elsewhere in this report for more information.

Changes to sale and distribution models and market expansion

Historically Polestar has sold its vehicles through the following principal sales channels:

•Direct-to-consumer model: Potential customers can experience Polestar vehicles, engage with Polestar specialists and test drive Polestar vehicles (in certain cases) in Polestar Spaces. The customer then orders the vehicle directly from Polestar via its digital sales channels.

•Direct-to-business model: In the U. S. and Canada, Polestar operates a direct-to-business model through which vehicles are sold directly to a network of independent authorized dealers. Vehicles are sold to dealers at wholesale prices and Polestar provides a suggested retail price.

•Fleet sales: Vehicles are sold to fleet customers (e. g., rental car companies and corporate fleet managers). As an incentive for high-volume purchases, sales to fleet customers often include discounts in the form of annual rebates based on the number of vehicles ordered during the year.

•Importer markets: Polestar also sells vehicles to various importers in smaller markets around the globe where