Good day, and thank you for standing by. Welcome to the Polestar second quarter and first half 2026 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Anna Gavrilova. Please go ahead. Thank you, operator. Hello, everyone. I am Anna Gavrilova, Head of Investor Relations at Polestar. Thank you for joining this call covering Polestar's results for the second quarter and the first half of 2026. I am joined by Michael Lohscheller, Polestar CEO, and Jean-François Mady, Polestar CFO, who will comment on the performance, and then we will open the floor to analysts' questions. Before we start, I would like to remind participants that many of our comments today will be considered forward-looking statements under the U.S. federal securities laws and are subject to numerous risks and uncertainties that may cause Polestar's actual results to differ materially from what has been communicated. These forward-looking statements include, but are not limited to, statements regarding the future financial performance of the company, production and delivery volumes, financial and operating results, near-term outlook and medium-term targets, fundraising and funding requirements, macroeconomic and industry trends, company initiatives, and other future events. Forward-looking statements made today are effective only as of today, and Polestar undertakes no obligation to update any of its forward-looking statements. For a discussion of some of the factors that could cause our actual results to differ, please review the risk factors contained in our SEC filings. In addition, management may make references to non-GAAP financial measures during the call. A discussion of why we use non-GAAP financial measures and a reconciliation of the most directly comparable GAAP measure can be found in the appendix of the press release and in the Form 6-K published today. Now I will hand over to Michael. Thank you, Anna. Hello, everyone, and thank you for joining us today as we present our second quarter and first half 2026 financial and operational results. I am pleased with the commercial progress we have achieved in light of the market condition which remain challenging. We delivered a record first half with retail sales of 30,423 cars. This growth has been supported by the continued transition to our active selling model, the expansion of our retail network, and a stronger contribution from Polestar 4 coupé, which is our best-selling car. This has happened during one of the most challenging and competitive times I have experienced in the automotive industry, and delivering record sales in this environment confirms that customers want our cars. At the same time, we are realistic about the challenges we face. Competition in the EV market continues to intensify. Pricing pressure remains significant, and geopolitical developments continue to impact the industry. We have also seen regulatory headwinds, particularly in the U.S., which affected our performance during the first half. This, combined with factors mentioned above, further impacted our financial results. As was announced in late June, the U.S. Department of Commerce denied Polestar's application for an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards. In light of all this, we have updated our full-year volume outlook to low to mid single-digit growth. This reflects the continued market pressure across our industry as well as portfolio transition. Polestar 4 SUV customer deliveries will start in the fourth quarter and ramp up into next year. Our focus remains on building the right product and channel mix and strengthening the underlying performance of the business. The most important thing is that the operational improvements we have been implementing are beginning to show results. Our reported operating loss improved significantly compared with the first half of last year, which included substantial impairment charges. At the same time, cost discipline measures contributed to lower general and administrative expenses. When I joined Polestar two years ago, we had to address a number of structural challenges. For the past two years, we have worked to build a leaner, more focused, and more resilient company. We are not trying to be everything everywhere all at once. Instead, we are concentrating on the areas where we can create sustainable value, improve profitability, CapEx allocation, and position Polestar for long-term success. We are doing the right things and we are beginning to see the benefits of those actions. A key part of that transformation has been our shift from an online-first model to a retailer-led commercial sales model. Today, we work with 235 sales points and 178 retail partners across 28 markets, and our retail footprint has expanded by 39% year-on-year. This transformation is about much more than opening new locations. It's about working more closely with our partners, improving the customer experience, and giving retailers a business model they can invest in with confidence. We have also continued to strengthen the company's financial foundations. During the first half, we have enhanced our capital structure through new external equity funding, debt to equity conversion with Volvo Cars and Geely Sweden, and the extension of the remaining Volvo Cars shareholder loan. These actions have increased our financial flexibility as we execute our strategy and prepare for upcoming launches. Yesterday, we opened the order books for the new Polestar 4 SUV. As a sibling to our best-selling Polestar 4 coupé, it brings everything customers already love about the car to a broader audience. With vehicle-to-load capability, Google Gemini integration, one of the lowest carbon footprints in our portfolio, and the price starting at EUR 57,900, it is a very compelling addition to our product range. Over 900 cars are already on their way from the factory in Busan, South Korea, and customer deliveries will begin in the fourth quarter. We are also preparing for the imminent first customer deliveries of Polestar 5. Feedback from journalists who have driven the car has been exceptional. As our halo car, Polestar 5 embodies everything the brand stands for, design, performance, technology, and sustainability. Simply put, it is a Polestar brand on wheels. While market conditions remain challenging, our priorities are clear. We are growing our retail business. We are improving our operational performance. We are strengthening our financial position. We are launching the strongest product portfolio in our history. The transformation of Polestar continues, and we remain focused on disciplined execution and building a stronger company for the long term. With that, I will hand over to Jean-François and look forward to taking your questions. Thank you. Thank you, Michael. Good morning, good afternoon, everyone. Looking at the financial results for the first six months of 2026, operating loss reduced by 43%. In summary, these results were supported by car line mix evolution toward higher margin models driven by Polestar 4, positive adjustment of net realizable value of inventory, except in the U.S., continued cost discipline measures, and lower headcount spend, and the net impairment expense recognized in the first half of 2025, with no impairment expense recognized in H1 2026. These positive developments were offset by a number of adverse factors in the period, mainly continued pressure on pricing, lower sale of carbon credits, adverse foreign exchange movement, positive one-off in first half 2025, and material adjustments related to the U.S. restructuring measures. The U.S. material adjustments related to the decision by the U.S. Department of Commerce, Bureau of Industry and Security, the BIS, amounted to an estimated $130 million. The impact regarding the U.S. operation is mainly recognized in the following areas. Residual value guarantee cost within revenues, net realizable value of inventory within other cost of sale, and organizational changes impact on investment and suppliers, which are included in other operating expense. These are based on current estimates and information available as of the reporting date. Additional costs and charges may arise as further assessment are completed and the full effect of the BIS decision continue to develop. Starting with the result for the first six months of 2026. Retail sales of over 30,400 cars were supported by the continued transition to an active selling model, retail sales network expansion, and Polestar's attractive model lineup. Polestar 4 coupé remain our best-selling model, and it made up 2/3 of the volume. By geography, we saw particularly strong performance in Europe, led by the U.K., Germany, and Southern Europe. And in Asia-Pacific, by South Korea. Europe delivered 78% of our total volume. Our U.S. business continued to be affected by higher tariffs and changes in the regulatory environment. In the first half of 2026, the U.S. market represented 6% of our retail sales, down from 9% in the same period in 2025. In the period, we were active in 28 markets worldwide, including 17 in our key region of Europe. We launched sale in Estonia at the end of June, with sale to start in two more Baltic countries, Latvia and Lithuania, imminently. In cooperation with our partners, we opened 24 new sales point and signed up 20 new retailers in the first half of 2026. Most of this expansion was in Europe. Revenue of $1.36 billion was 4% lower year-on-year. The positive effect from volume, car line mix, and foreign exchange tailwinds was offset by significant pressure on pricing, residual value guarantee cost, mainly in the U.S. and related to the BIS decision, and lower carbon credit sale of $52 million versus $72 million last year. In addition, we recognized $4 million of carbon credit sale, booked in other operating income compared to $18 million last year. The decrease in revenue related to sale of carbon credits primarily reflect the increased competition in EU, while the decrease in other operating income is mainly driven by regulatory changes in U.S. Gross margin was a negative 8% in the period, an improvement of 41 percentage points as the comparable period result was impacted by net impairment expense of $724 million. Adjusted gross margin was a negative 9%. The key drivers impacting profitability negatively were lower revenue, growth in cost of sale due to higher production costs associated with the car line mix, EU and U.S. tariff impact, limited product cost reduction due to higher raw material cost, and 2025 one-off positive item, which did not repeat in 2026. The profitability was further impacted by material adjustment included in the reported results, specifically adjustment of inventory to net realizable value in the U.S. related to the U.S. restructuring. These negative key drivers were, however, partially offset by positive margin development due to the car line mix attributable to Polestar 4 and positive adjustment of inventory to net realizable value, excluding in the U.S. market. Selling, general, and administrative expenses of $431 million were flat year-on-year. Saving in general and administrative expenses driven by continuous cost discipline and lower headcount spend were offset by higher sales agent remuneration and increased marketing activities following the launch in France in June 2025 and to the launch of the Polestar 5 in different markets. Research and development expenses were $15 million, down from $31 million due to reduced headcount and spending on new program with higher capitalization rate compared to the prior period. Operating loss of $629 million and net loss of $842 million narrowed year-on-year, respectively by 43% and 29%, mainly due to net impairment expense of $724 million recognized in the prior period. This development was mainly offset by factors previously mentioned and by foreign exchange headwinds and costs related to the U.S. restructuring, related to the U.S. Polestar organizational changes, investment, and suppliers impacting the other operating expenses. Other operating income were as well impacted by lower sale of carbon credit and H1 2025 positive one-off impact, driven by the commercial termination of our operation in China in Polestar Prime Technology Company. Higher finance expense and net foreign exchange losses on financial activities were further factors contributed to net loss. Adjusted EBITDA loss for the first half of 2026 of $521 million increased year-on-year despite margin improvement due to model mix driven by Polestar 4, due to adverse evolution of profitability with adjusted gross loss in the period, which included the impact of the U.S. restructuring measures, H1 2025 positive one-offs, unfavorable foreign exchange movement, and negative other income effect as previously mentioned. If we look at the result of the second quarter, retail sales were close to 17,300 cars, a decrease of 4% year-on-year. Revenue was $727 million, down 8% year-on-year on lower volume, pressure on pricing, lower sale of carbon credits, and residual value guarantee cost in the U.S. connected with the U.S. restructuring measures. Sale of carbon credits amounted to $36 million in Q2 2026 versus $42 million in Q2 2025. In Q2 2025, we also recorded $19 million of carbon credit sale in other operating income. Carbon credit sales are expected to follow the same pattern with revenue weighted toward the second half of the year. Gross margin was negative at 13%, representing an improvement from the last year result of a negative margin of 97%, which reflected the net impairment expense of $724 million recognized in the second quarter 2025. Adjusted gross margin was a negative 13% from negative 6% last year. The lower margin was predominantly a result of lower revenues, adjustment of inventory to net realizable value in the U.S. due to the U.S. restructuring measures, and Q2 2025 positive one-off impact. These were, however, partially offset by positive margin development due to the car line mix driven by Polestar 4 and positive adjustment of inventory to net realizable value excluding in the U.S. market. Net loss for the quarter was $459 million, an improvement of 55% compared to net loss of $1,027,000,000 a year earlier. Mainly due to the fact that no impairment expense was recognized in the reporting period compared to a year ago. Adjusted EBITDA loss of $286 million compared to adjusted EBITDA loss of $206 million in the prior year period was due to adjusted gross loss result explained earlier, unfavorable foreign exchange movement, and negative other operating income item. These impacts were offset by lower selling, general, and administrative expenses driven by cost discipline and reduced head count despite higher sales agent remuneration due to the car line mix, and lower net research and development expenses due to the reduced head count and spending on new program with higher capitalization rate compared to the prior period. On the funding of our operation and liquidity, we provided a detailed update at the full year result in April. Since then, Geely Sweden and Volvo Cars completed the conversion of approximately $640 million of loan outstanding to Polestar, including accrued interest into equity. In the meantime, Volvo Cars extending the maturity of its remaining shareholder loan of $660 million to December 2031. This transaction further strengthen our capital structure, reduce leverage, and enhance our financial flexibility. It demonstrate as well the continued support of our key shareholders. Polestar was in compliance with all its covenant at the end of the second quarter 2026. Our cash position at the end of June 2026 was $888 million from $1,159,000,000 at the end of 2025. The change in cash position was primarily driven by operating cash outflow of $850 million, mainly reflecting the operating loss net of non-cash adjustment, financial interest expense, and a negative movement in working capital driven primarily by negative change in trade payables, partly offset by favorable movement in inventory and trade receivable. Within investing outflow, capital expenditure amounted to $211 million, and within positive net financing inflow of $769 million, primarily driven by the new equity proceed of $700 million previously announced, and a net increase in borrowing, partially offset by repayment of debt financing. To conclude, I would like to reiterate our priorities in this challenging environment. First, driving growth through the active selling model, expanding sale network, and by leveraging our attractive and broadened model lineup. As Michael mentioned earlier, we continue to make progress with Polestar 5 and Polestar 4 SUV. We have updated our volume guidance to low to mid single-digit volume growth to reflect current market condition, portfolio changes, and our focus on quality growth. Second, continuing to reduce losses and improve profitability through cost discipline, efficiency measures, and a relentless focus on operational execution. Third, maintaining financial flexibility through disciplined working capital management, improved cash conversion, and prudent capital allocation. Finally, continuing to strengthen our capital structure and securing appropriate sources of future funding. Now, I will hand over back to the operator. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, that's star one and one to ask a question. We will now take our first question. From the line of Josh Young from Barclays. Please go ahead. Good morning. Josh Young on for Dan Levy, Barclays. Thank you for taking the questions. First off, it's great to see the early looks at the Polestar 4 SUV. Are you able to share any early indications on how demand is trending, as well as any learnings or maybe some enhancements this might translate, how this might translate to other models and variants? Similarly, what are the latest reads for the Polestar 5? Thank you. Yeah, thanks, Josh. Michael here for the question. Let me talk a little bit about the Polestar 4 SUV, which obviously we started with the launch yesterday and very good feedback. Why is it so positive? It's actually very simple. First of all, SUV trend is very strong, right? With that, the Polestar 4 really goes into the mainstream and where the big segment is, while the coupé is always a bit in the niche, right? That's a big improvement car, very well received, especially by fleet people, but also private demand. Again, we just start with this. It's early days, but very optimistic because the coupé was a little bit in the niche. Now with SUV, we go right into the sweet spot of the market. Very, very important car for us and early days, right? Polestar 5, also just at the beginning, obviously very, very different segment, right? Also, the role of the car is different. It is about positioning the brand, but also there we get a lot of attention and start to deliver now the first cars. People obviously want to test drive the car, right? It is very unique. It is a very specific car. Both cars are, I see, off to a very good start. Okay, great. Thank you. As a brief follow-up, while it remains earlier, are you able to share volume expectations for 2027 or maybe just some broad puts and takes there? Yeah. Obviously, as we highlighted during this call, we have changed the guidance for 2026 because market conditions are slightly different, right? Obviously, for 2027, we work through this. The reason why we are cautiously optimistic for 2027 is because the product lineup is different. As we have announced in February of this year, we obviously launched the Polestar 4 SUV, as we were just talking about. In addition to that, also the Polestar 2 successor. Both cars go right into the big segments of the market. The profit pools, the volume potential is much, much bigger, and also both segments are growing, right? More to come on this, what that means in precise volume numbers, right? Obviously, it is a big shift from where Polestar was very much into niche segments, right? Going into much bigger segments. Also there, we are doing the right things and now depends obviously on the market conditions, and whether you update on this further when we come to 2027. Again, I want to highlight the importance of those two cars, which go right into the sweet spot of the market. Perfect. Thank you so much. We will now take our next question from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead. Hi, everyone. Good morning, good afternoon. Thank you for taking our questions. I wanted to maybe follow up on one of the last questions there. As we look into next year now with the Polestar 4 SUV and Polestar 5, can you give us a sense of how are you thinking about unit mix for next year? Any kind of expectations there that you can mention? Thank you. Yeah. Needless to say, Polestar 4 is our best seller, right? Also, if you look at the data for the first half of this year, increasing trends. Polestar 4 gets more and more the dominant role in terms of our portfolio. Now we add another variant to it, right? So you have the SUV and the coupé. Obviously, Polestar 4 will play the dominant role next year. Polestar 2 successor will also play a key role, obviously, then depending on the launch and the ramp up and so on, which will be in the second half of the year. But clearly then Polestar 2 will take a prominent role, whereas, obviously the Polestar 5 is very important for the brand and the positioning, but will be less important in terms of overall volume. Clear feedback, Polestar 4 with the two variants and Polestar 2 will be the dominant volume drivers in 2027. Got it. That is super helpful. Thank you. As a follow-up, just on liquidity. Now with the EUR 888 million as of Q2, just can you remind us, how are you thinking about capital needs and cash runway? Thank you. Yes, thanks, Andres, for the question. As you know, we have set up at Polestar a record in term of raising equity, as we have raised EUR 1.2 billion over the last 15 months. We have completed as well the debt to equity conversion from our shareholders for EUR 640 million at the end of June. We have as well extended the maturity of a loan from one of our shareholder until 2031. And during the first six months of 2026, we have renewed or increased EUR 1.7 billion of banking facilities. Of course, it has contributed to increase the robustness of our balance sheet, improving the capital structure, and also improving our liquidity position. When we are looking at H2, as mentioned by Michael, the Polestar 4 coupé and SUV will play a pivotal role, especially in term of profitability, as those are not only volume maker, but those are the most profitable car. And when you look at the cash flow evolution, that will help in term of net cash in addition to have a very strong working capital. But also, I would like to point out the fact that in term of CapEx spending, we have cut back 1/3 our CapEx spending. We should expect entering H2, I would say, a significant reduction in term of cash burn, which has been quite driven by seasonality, especially coming back to Q1 2026. We are doing everything to cut our losses. We have a very exciting product launch addressing segment with the biggest volume, but also profitable pool. We are accelerating to cut those losses, reducing our needs. Of course, we are exploring any opportunity to improve our capital funding. But so far, there is nothing to call out on this matter. Got it. Very helpful. Thank you for all that detail. If I could squeeze maybe one last one. Just on the U.S. restructuring and the decision by the Department of Commerce of Bureau of Industry, is there an opportunity perhaps to appeal this decision or is there an opportunity to perhaps have this decision changed at all? Just curious how you're thinking about it, or is this now kind of final and moving on from 2027 onwards? Thank you. Yeah. Thanks, Andres, for the question. We will not appeal and accept this decision, right? That means we will sell model year 2026 now in the U.S., but are not able to sell model year 2027. Obviously, we will continue with service and used car business in the U.S., right? We will stay there, but we will not appeal that decision. Great. Okay. Thank you very much. Congrats, and we will pass it on. Thank you. Thank you. Thank you. There are no further questions at this time. I would like to turn the conference back to Michael Lohscheller for closing remarks. Thank you everybody for joining for this conference call in terms of Q2 and H1 results. So keep in touch and wish you a wonderful day. Talk to you soon. Bye-bye. This concludes today's conference call. Thank you for participating. You may now disconnect.