Polestar ($PSNY) Q1 2026 results: record deliveries but margins collapsing — turnaround or trap?

Polestar ($PSNY) just dropped its Q1 2026 numbers and it’s a pretty mixed bag. Thought I’d break it down for anyone following the EV space.

**📈 The good:**

* **Record Q1 deliveries:** 13,126 cars (**+7% YoY**)
* Continued **retail expansion** (aiming \~250 locations globally)
* Strong performance in key markets like Europe
* Big **product pipeline** coming (Polestar 4, new Polestar 2, Polestar 7 SUV)

**📉 The bad (and it’s pretty bad):**

* **Revenue basically flat:** $633M vs $632M YoY
* **Gross margin flipped negative:** \-3.2% (from +10.3%)
* **Net loss widened massively:** \-$383M vs -$166M
* Adjusted EBITDA also worsened significantly

**⚠️ What’s hurting them:**

* Intense EV competition (no surprise)
* Tariffs (US + EU)
* FX headwinds
* Seasonality offsetting cost cuts

**💰 Balance sheet:**

* \~$676M cash at end of Q1
* Management says liquidity improved, but burn is still high

**🧠 My take:**
This is a classic “growing but not profitable” EV story.

They’re:

* Scaling deliveries ✔️
* Expanding distribution ✔️
* Building product lineup ✔️

…but:

* Losing more money ❌
* Margins deteriorating ❌

The key question is whether scale + new models can **flip margins back positive** before cash becomes an issue.