Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 147

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 5
Chunk 147
---
 accessories, revenue from the sale of software and performance engineered kits, revenue from sales of carbon credits, vehicle leasing revenue, and other revenue:

• Revenue from the sale of vehicles constitutes the primary source of revenue and was historically derived from sales of the PS2. During the year ended December 31, 2024, Polestar began generating revenues from sales of the PS3 and PS4. Polestar’s main customers for electric vehicles consist of private individuals ("retail"), fleet customers, dealers and certain Polestar Spaces, importers, financial service providers, and Polestar Times Technology (in April 2025, Polestar signed an agreement to terminate the business Polestar Times Technology. See Item 4B "Information on the Company - Business Overview - Sales and distribution s" for further details). Some of these vehicle sales are to our related parties Volvo Cars and Ziklo Bank AB (previously Volvofinans Bank AB). Sales of vehicles also includes revenue recognized for sales of accessories where Polestar either acts as principle or agent.

• Revenue from the sale of software and performance engineered kits is derived from intellectual property licensed to Volvo Cars related to software upgrades and enhancements for Volvo Cars’ vehicles.

• Revenue from sales of carbon credits is derived from sales of regulatory credits to external companies or related parties.

• Vehicle leasing revenue is derived from Polestar's operating lease arrangements.

• Other revenue is derived from sales of automotive research and development services and intellectual property licensed to Volvo Cars enabling Volvo Cars to source and sell Polestar parts and accessories.

Cost of sales

Cost of sales relates to inventory costs and other costs associated with Polestar's revenue generating activities. Inventory costs are purchase costs, conversion costs, and other costs incurred in bringing inventories to their present location and condition. These consists of contract manufacturing costs associated with the production of the PS2 and PS3 which is outsourced to Volvo Cars (production of the PS2 was previously outsourced to Geely) and the production of the PS4 which is outsourced to Geely. Inventory cost also includes depreciation related to property, plant and equipment ("PPE"), depreciation of right-of-use (“ ROU”) assets, amortization of intangible assets, warehousing and transportation costs for inventory, customs duties, and other manufacturing and overhead. Costs presented within costs of sales which are not related to inventory costs are other costs related to Polestar's revenue generating activities such as distribution costs and costs related to warranty provisions. Additionally, as of the fourth quarter of the year ended December 31,