Polestar, gearing up for Polestar 3 production in the U.S., is reevaluating its pricing strategy. The Swedish automaker has introduced new variants of its electric SUV, reducing the entry price to $73,400 from the previously announced $83,900, making it eligible for federal tax credits, subject to battery manufacturing compliance with IRA provisions.
Last month, Polestar commenced production of the Polestar 3 in Chengdu, China, marking its flagship model’s debut. Scheduled for U.S. production alongside the Volvo EX90, the Polestar 3’s market positioning has evolved significantly since its announcement two years ago, necessitating pricing adjustments.
Despite robust sales, Polestar has yet to achieve profitability, prompting Volvo to curtail funding. However, collaboration between the two brands in R&D and manufacturing will continue, given their shared ownership by China’s Geely.
The absence of a clear path to profitability has led to Polestar’s decision to reduce its workforce by 15%, acknowledging prevailing market challenges.
Nonetheless, Polestar’s production plans proceed as scheduled, with the Polestar 3 commencing production in China and set for U.S. production this summer at Volvo’s South Carolina plant.
Reflecting market dynamics and subdued EV sales, Polestar has revised its sales strategy, notably lowering the Polestar 3’s starting price to $73,400, inclusive of the Pilot Pack as standard across all variants.
Additional packages, such as the Plus Pack and Performance Pack, offer enhanced features and performance upgrades, catering to diverse consumer preferences. Notably, the revised pricing renders the Polestar 3 $5,000 more affordable than previously announced, facilitating broader market accessibility.
Prospective customers stand to benefit from potential eligibility for federal tax credits, provided Polestar sources battery materials from North America, aligning with regulatory requirements.