Polestar nears US sellout of remaining 2026 models as ban looms

By Harshita Mary Varghese and Marie Mannes

STOCKHOLM, Oct 8 (Reuters) - Polestar is close to selling out its remaining model year 2026 cars in the US, CEO Michael Lohscheller told Reuters on Thursday, as the Swedish automaker faces a US ban on selling new vehicles from the next model year.

The company, majority-owned by China's Geely Holding, posted third-quarter sales volume of 14,371 units, 1% higher than 14,222 a year ago.

Here are some details:

• The company sold about 2,160 units in the US during the quarter, compared with 966 last year

• US sales were strong in the quarter "as we are now selling the last model year 26 cars," Lohscheller said

• Excluding the US, retail sales fell 8% in the quarter

• The automaker will not be allowed to sell cars in the US  due to new rules by the Commerce Department to block China-linked cars with connected-vehicle technology

• In the US, Polestar is selling existing Polestar 3 and 4 inventory while will maintain its service network and used-car business

• In September, Polestar cut its full-year volume growth guidance and said it expected higher competition to persist

• Sister brand Volvo Cars last week pulled its own full-year volume guidance after posting a 40% drop in China retail sales

• The company has pivoted to the European market and plans to produce the compact SUV, Polestar 7, at Volvo's factory in Slovakia

• The Polestar 5 has begun customer deliveries, while Polestar 4 SUVs have arrived at European ports and are being distributed to retailers, Lohscheller said

• Europe sales were weaker in the quarter, but Lohscheller expects them to improve as new models are launched

• Polestar 5 is seeing strong interest in the UK, with Germany and Scandinavia also showing demand, he added

• Polestar is expected to report third-quarter results on November 5

(Reporting by Marie Mannes in Stockholm and Harshita Mary Varghese in Bengaluru; Editing by Sahal Muhammed and Leroy Leo)