Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 105

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 105
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 active selling model in order to drive sales volumes. At the same time, Polestar is rightsizing the organization and is focused on financial discipline.

Polestar has already been implementing and intends to enact further measures to deliver on its strategy and business plan:

•New senior management(Chief Executive Officer and Chief Financial Officer) were appointed in October 2024 to lead Polestar in the next chapter of its journey. The executive team who include further members of senior management focus on growth and financial discipline.

• Polestar is accelerating thetransition to an active sales model and is expanding its retail presence to accelerate growth. Polestar expects to increase retail spaces by 75% in Europe and North America by 2026, and to enter a new market, France, in 2025.

• Polestar isoptimizing manufacturing footprint to minimize the tariffs impact. Polestar has been deploying an asset-light contract manufacturing approach to produce its cars, leveraging partnerships with Volvo Cars and Geely Group. This diversity of manufacturing locations (in the USA, China, South Korea from the second half of 2025, and Europe in the

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future) allows Polestar to flex its manufacturing arrangements and optimize distribution in order to minimize impacts from tariffs.

• Polestar is working with internal teams toreduce product cost through enhancement of technical efficiencies, especially in product designs, as well as through ongoing negotiations with suppliers.

• Polestar is fully focused onenhancing operating efficiency and maintaining cost discipline to reduce product cost and operating expenses. Reduction of operating expenses is expected to be driven by operational efficiency enhancement measures and organizational restructuring. These cost cuts are expected in the areas of group headcount and marketing expenses. During 2024, Polestar's workforce was reduced by over 400 employees. Marketing expenses are expected to decline given that in 2025 Polestar anticipates to launch only one new model, Polestar 5, compared with launches and related ramp-up activity for two models in 2023-2024. Polestar intends to leverage its digital tools and solutions to increase effectiveness of its customer engagement. Sales efficiency is also expected to improve with diversification of sales via the agent model.

• Polestar intends to focus oncontrol of capital expenditure. Given synergies with Geely Group, Polestar expects to achieve better capex efficiency through platform sharing; further leveraging the partnership with Geely Group, Polestar may benefit from further synergies. Further capex efficiency is expected to be derived from harmonizing the platform for future models in order to reduce development costs