Polestar vs Tesla: Revenue, Profit and Business Model
Polestar reported $3.1B of revenue in FY2025 and a net loss of $2.4B. Tesla reported $94.8B of revenue in FY2025 and $3.8B of net income.
Latest financial snapshot
Financial summary
Polestar
Polestar's revenue rose 50% to $3,058 million in 2025 as retail sales climbed 34% to 60,119 cars, but impairments of about $1.1 billion pushed the net loss to $2,357 million. In the first half of 2026 revenue slipped 4% to $1,360 million, the operating loss narrowed 43% to $629 million and cash stood at $888 million at the end of June.
Tesla
Tesla's revenue peaked at $97.69 billion in 2024 and slipped 2.9% to $94.83 billion in FY2025, while net income fell from $7.09 billion to $3.79 billion as vehicle prices and regulatory-credit income declined. The second quarter of 2026 reversed the top-line trend: revenue rose 26% to a record $28.24 billion, with automotive up 23% to $20.52 billion, services and other up 50% to $4.58 billion, and energy up 13% to $3.14 billion. Profit did not follow. GAAP net income fell 5% to $1.11 billion and adjusted EPS of $0.33 missed estimates because of higher R&D and AI infrastructure spending.
Revenue and profit by year
Polestar
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $3.1B | -$2.4B | -77.1% | +50.3% | Source |
| FY2024 | $2B | -$2B | -100.8% | -14.1% | Source |
| FY2023 | $2.4B | -$1.2B | -49.9% | -3.0% | Source |
| FY2022 | $2.4B | -$479M | -19.6% | +81.7% | Source |
| FY2021 | $1.3B | -$969.8M | -72.2% | +120.2% | Source |
| FY2020 | $610.2M | -$484.9M | -79.5% | — | Source |
Tesla
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $94.8B | $3.8B | 4.0% | -2.9% | Source |
| FY2024 | $97.7B | $7.1B | 7.3% | +0.9% | Source |
| FY2023 | $96.8B | $15B | 15.5% | +18.8% | Source |
| FY2022 | $81.5B | $12.6B | 15.4% | +51.4% | Source |
| FY2021 | $53.8B | $5.5B | 10.3% | +70.7% | Source |
| FY2020 | $31.5B | $721M | 2.3% | +28.3% | Source |
| FY2019 | $24.6B | -$862M | -3.5% | +14.5% | Source |
| FY2018 | $21.5B | -$976M | -4.5% | +82.5% | Source |
| FY2017 | $11.8B | -$2B | -16.7% | +68.0% | Source |
| FY2016 | $7B | -$674.9M | -9.6% | — | Source |
Where the revenue comes from
Polestar
No segment breakdown is published.
Tesla
- Automotive sales and leasing~73%
Model 3, Model Y, Cybertruck and remaining other models, plus regulatory credits. $20.52B in Q2 2026.
- Services and other~16%
Supercharging, FSD and connectivity software, service, used cars, insurance and parts. $4.58B in Q2 2026, up 50%.
- Energy generation and storage~11%
Megapack, Powerwall and solar. $3.14B in Q2 2026, up 13%.
Business model and strategy
Polestar
How it makes money
Polestar operates an 'Asset-Light', premium B2C Automotive model. 1. Direct-to-Consumer Sales: Following the Tesla playbook, they bypass traditional legacy dealerships, selling cars entirely online and utilizing highly minimalist physical 'Polestar Spaces' in premium city centers purely for test drives. 2. Shared Manufacturing (The large cost saver): Polestar does not own large, multi-billion dollar factories.
Growth strategy
Facing absolute financial distress and a desperate need to scale, Polestar's large growth strategy is an aggressive, all-in pivot from selling a single sedan (Polestar 2) to launching large, highly lucrative Luxury SUVs (Polestar 3 and 4). They realize the global premium market demands large SUVs, not small sedans.
Competitive advantage
Polestar's absolute competitive advantage is its large, impenetrable moat of 'Scandinavian Design Aesthetics' and its highly deep integration with Google. While Teslas are highly fast, their interiors are notoriously stark and often poorly built. Polestar heavily leverages Volvo's well-known reputation for build quality and safety.
Tesla
How it makes money
Tesla operates a vertically integrated electric vehicle, clean energy generation, and software ecosystem model. The company generates revenue across four primary pillars: First, Automotive Sales and Leasing, selling mass-market electric vehicles (Model Y, Model 3) and premium models (Model S, Model X, Cybertruck) directly to consumers without franchised dealers.
Growth strategy
Tesla's growth plan rests on four bets. First, regain vehicle volume: deliveries fell 8.6% to 1.64 million in 2025, then rebounded to a record 480,126 in Q2 2026, up 25% year over year. Second, autonomy: Tesla runs a paid robotaxi service in several U.S. cities and is building the steering-wheel-free Cybercab, though the Q2 2026 shareholder letter dropped the target of volume production in 2026.
Competitive advantage
Tesla's advantage comes from brand strength, direct sales, software updates, charging infrastructure, battery and powertrain know-how, manufacturing scale, data, and energy-storage growth.
Questions about Polestar vs Tesla
Which company has higher revenue — Polestar or Tesla, Inc.?
Polestar reported $3.1B (FY2025), while Tesla, Inc. reported $94.8B (FY2025). By last reported revenue, Tesla, Inc. is the larger business, with Polestar reporting a smaller revenue base.
What is the market cap of Polestar vs Tesla, Inc.?
Polestar's market capitalisation stands at $1.1B, while Tesla, Inc.'s is $1.49T. Tesla, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Polestar.
Which is more financially efficient — Polestar or Tesla, Inc.?
Polestar generates $1.81M / employee in revenue per employee, while Tesla, Inc. generates $704k / employee. Polestar shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Polestar and Tesla, Inc. make money?
Polestar and Tesla, Inc. generate revenue in fundamentally different ways. Polestar: Polestar operates an 'Asset-Light', premium B2C Automotive model. Tesla, Inc.: Tesla operates a vertically integrated electric vehicle, clean energy generation, and software ecosystem model.
Which company is valued higher relative to revenue — Polestar or Tesla, Inc.?
On a price-to-sales (P/S) basis, Polestar trades at 0.4x P/S and Tesla, Inc. at 15.7x P/S. Tesla, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Polestar. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Polestar bigger than Tesla, Inc.?
By last reported revenue, Tesla, Inc. ($94.8B (FY2025)) is the larger company compared to Polestar ($3.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Polestar vs Tesla overview