Polestar Refuses to Play Tesla's Price-Slashing Game

Polestar 3
Polestar 3

Tesla’s been playing some weird price-cutting (and then price-raising) games recently, which has led some automakers such as Ford to in turn cut its prices. But not every electric automaker plans to play Tesla’s game. Like Volkswagen, Polestar says it plans to keep its prices where they are and instead focus on carving out its own niche in the EV industry.

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Automotive News reports that on an earnings call yesterday, Polestar CEO Thomas Ingenlath told analysts that he’s more interested in capturing the more profitable high-end luxury EV segment. According to Ingenlath, while Tesla “is very much concentrating to go mass market in the future to compete with the likes of Volkswagen and Toyota, Polestar’s ambition is to go fully into this premium, luxury sports car segment. We are not aiming to produce 10 million cars per year.”

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To succeed in that segment, Polestar plans to introduce four new EVs over the next four years. Late this year, the Polestar 3 electric crossover will go on sale, followed by the coupe-like crossover the Polestar 4 in 2024. The next year, the Swedish automaker plans to add a larger sedan called the Polestar 5. Polestar also says it plans to introduce a convertible to the lineup in 2026.

“We will move our product portfolio upmarket and explore that end,” Ingenlath said on the call, explaining Polestar’s goal to be more of a Porsche rival than a Tesla rival. “We are keen on developing desirable cars that offer great tech and design, and they have their price.”

The other reason he doesn’t want to get into a price war with Tesla is that he wants to protect Polestar’s resale value, which should in turn keep current owners happy. Ingenlath told analysts he wants to make sure customers enjoy a “stable, reliable value with this car, that is [the] premium strategy that we are determined to follow.” How that will work out for Polestar remains to be seen, but at least for now, it sounds like a smart strategy.

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