Polestar confirmed it’s developing a second-generation version of its popular sedan rather than replacing it with an SUV. CEO Michael Lohscheller told Drive the Swedish performance EV brand will keep the fastback-style design that’s made the Polestar 2 its bestselling model.
The decision marks a shift from previous company direction under former CEO Thomas Ingenlath.
Since launching for the 2020 model year, Polestar has sold 180,000 units of the Polestar 2. The sedan remains the brand’s most popular vehicle despite being the oldest in a lineup that now includes the Polestar 3 and Polestar 4 SUVs.
“Let’s word it like this: I want to have those current Polestar 2 customers back,” Lohscheller said. “I want to have those, because we built it up [the customer base]. I think we did a great job, and I want to keep them in the family.”
The new Polestar 2 won’t arrive for at least another couple years.
Company Changes Course on Product Strategy
Lohscheller’s comments contradict his predecessor’s plans. Towards the end of 2023, Ingenlath said “we will not replace the Polestar 2 with a Polestar 2” – suggesting the company would ditch the sedan for a similar-sized SUV crossover.
The new strategy means Polestar’s smallest SUV will sit alongside the redesigned sedan. That crossover – expected to be called the Polestar 7 – will arrive in 2028.
The Polestar 7 will be built at Volvo’s factory in Kosice, Slovakia. It’ll share the same electrical architecture as the upcoming all-electric Volvo EX60, which will be the first Volvo built on the company’s new SPA3 platform.
SPA3 was developed independently from Geely, the Chinese automotive giant that owns both Volvo and Polestar.
Financial Pressures Mount
Despite initial popularity among US EV buyers, the Chinese-built Polestar 2 faced significant challenges in American markets. Tariffs and pricing pressures contributed to Polestar losing $1.03 billion in Q2 this year.
A 100% import tariff on Chinese-made cars imposed by the Trump administration forced Polestar to stop US sales of the Polestar 2 earlier this year.
The company’s sales geography reflects these market pressures. Europe accounts for 77% of all Polestar sales, while the US comprises just 8%. European sales in Q2 2025 jumped 38% year-over-year with 18,049 vehicles sold.
The strong European performance likely influenced the decision to continue the sedan format that’s proven popular with those buyers.
