A growing number of issues with the Chinese electric vehicle brand Polestar have prompted consumer complaints and legal action in Australia, highlighting broader concerns about the reliability and service of the company’s vehicles.
Consumer Affairs Victoria has reported proceedings lodged with the Victorian Civil and Administrative Tribunal (VCAT) under the Australian Consumer Law, involving disputes over vehicle defects and buyback negotiations. One complainant, identified as Ms Y, said Polestar has agreed in principle to repurchase her vehicle, but no final agreement has been reached. Polestar representatives acknowledged ongoing discussions, emphasizing the complexity of the case due to the vehicle being acquired through a novated lease arrangement. The company described engagement as constructive and said it is working toward a managed resolution with the involved parties.
Polestar’s quality and reliability record has been consistently criticized on a global scale. Independent assessments, customer reviews, recall data, and media reports point to repeated electrical, software, and hardware malfunctions, particularly with the Polestar 3 model. Complaints noted include a range of serious issues such as the vehicle's digital displays failing or rebooting at high speeds, loss of speedometer functionality, unintended shifting into park while driving, airbag system faults, emergency call system errors, and problems with reversing cameras.
The brand’s performance in the 2024 JD Power US Initial Quality Study underscores these concerns. Polestar scored 316 problems per 100 vehicles, ranking below competitor electric vehicle makers like Tesla and Rivian despite their own well-documented quality issues.
Ms Y’s experience with delayed and difficult buyback negotiations reflects a pattern observed globally. Lemon law specialists in the United States have criticized Polestar’s handling of repurchase commitments, noting delays or failures to complete buybacks despite acknowledged persistent defects. Online reviews echo similar frustrations, with Polestar UK’s Trustpilot rating listed as “poor.” Customers frequently cite slow responses, broken promises, inadequate escalation processes, communication breakdowns, and the need for repeated repairs.
Polestar’s financial challenges add further complications. In mid-2025, the company disclosed a “material uncertainty” regarding its ability to continue as a going concern in unaudited financial statements. Its net loss for the first half of 2025 reached $US1.193 billion—a 119 percent increase from the previous year. Over the past five years, Polestar’s share price has fallen sharply, from $555 to $28.
Pending legal action and ongoing customer dissatisfaction emphasize the difficulties facing Polestar owners seeking redress in Australia. Observers warn that the tribunal system may be leveraged by dealers and manufacturers to limit consumer rights, complicating resolution for individuals experiencing serious vehicle problems. Further developments are expected as these cases proceed.