Electrical car pioneer Tesla has trimmed a few of its sticker costs to seize a fair bigger share of the U.S. EV market. However one of many phase’s latest entrants — Swedish electrical model Polestar — has no intention of chasing the front-runner.
Polestar CEO Thomas Ingenlath informed analysts Thursday on an earnings name that his focus is carving out a distinct segment within the higher-margin, luxurious finish of the EV market.
Whereas Tesla “could be very a lot concentrating to go mass market sooner or later to compete with the likes of Volkswagen and Toyota, Polestar’s ambition is to go absolutely into this premium, luxurious sports activities automotive phase,” Ingenlath stated. “We aren’t aiming to supply 10 million vehicles per yr.”
Ingenlath’s strategy is pragmatic.
Polestar has neither the model consciousness nor the revenue margin to launch right into a market share warfare with phase heavyweights Tesla and Ford. The Volvo affiliate started delivering its first and solely mass-market EV, the Polestar 2 fastback, in 2020.
However a trio of extra highly effective, higher-priced fashions aimed on the U.S. market will arrive over the following three years and will bolster Polestar’s foothold within the luxurious EV area.
The Polestar 3 midsize crossover lands in U.S. shops in This fall and can begin at $85,300, together with delivery. The Porsche Cayenne-size utility mannequin is constructed on a brand new Volvo-developed electrical platform and sports activities a Polestar-inspired design.
Subsequent yr, the automaker will debut a second crossover — the sporty Polestar 4. The Polestar 5 massive sedan follows in 2025, and the Polestar 6 roadster a yr later.
Polestar’s product portfolio aspires competitively to rival Porsche, not Tesla, Ingenlath stated.
“We are going to transfer our product portfolio upmarket and discover that finish,” he stated. “We’re eager on growing fascinating vehicles that supply nice tech and design, they usually have their worth.”
Ingenlath pointed to the 2024 Polestar 2, which arrives within the third quarter and delivers extra energy and vary, a brand new drive configuration and revised entrance fascia.
Polestar’s chief has another excuse to keep away from a worth warfare — defending residual values and avoiding ticking off current clients.
Tesla’s determination to slash costs by as a lot as 20 p.c drew protests from some clients who noticed the resale worth of their vehicles dinged.
Making certain clients have a “secure, dependable worth with this automotive, that’s [the] premium technique that we’re decided to observe,” Ingenlath stated.
The Polestar 3 will start manufacturing in China this yr, with U.S. output beginning in mid-2024 at Volvo’s manufacturing unit in Charleston, S.C.
However the U.S.-assembled crossover will not qualify for a $7,500 federal EV tax credit score, Ingenlath confirmed on the decision.
The crossover will launch in a “closely geared up luxurious specification” that places it past the tax credit score’s $80,000 eligibility worth cap for brand spanking new gentle vehicles.
“At the moment, we’re happy with the order consumption and don’t see the necessity to decrease the value, which might [affect] our margin,” Ingenlath stated.
However the CEO left the door open for an entry-priced, less-equipped Polestar 3 variant that would qualify for the EV tax credit score.
“That’s one thing that we glance upon sooner or later,” he stated.