Photo: Polestar
As Polestar is preparing to start Polestar 3 production in the US later this year, the Swedish carmaker is also reconsidering its pricing strategy. Polestar announced new variants of the electric SUV, lowering the entry price to $73,400 from the previously announced $83,900. This makes the Polestar 3 eligible for the federal tax credits, provided the battery manufacturing will respect IRA provisions.
Last month, Polestar announced that its factory in Chengdu, China, has started production of the Polestar 3, its flagship model. The seven-seater SUV will also be the first Polestar model to be produced in the US, alongside the Volvo EX90. However, since the Swedish carmaker announced the Polestar 3 two years ago, market conditions and Polestar's position have changed significantly.
Despite growing sales, Polestar has not yet seen a path to profitability. This has prompted Volvo to limit its losses and stop funding Polestar. However, the two brands will continue to share R&D and manufacturing efforts. They are both owned by China's Geely, so the Chinese carmaker is expected to step in and replace Volvo as the main sponsor. Polestar acknowledges the difficult market conditions and recently announced plans to lay off 15% of its workforce.
Aside from that, Polestar's plans continue as announced, with the flagship SUV Polestar 3 already starting production at the company's factory in Chengdu, China. The three-row SUV is also scheduled to begin production in the US this summer at Volvo's factory in South Carolina. However, given new market conditions and a marked slowdown in EV sales, Polestar is reconsidering its sales strategy.
Specifically, the Polestar 3 will start at a much lower price than the $83,900 announced last year. Previously, two variants of the Polestar 3 were planned, with the Long Range Dual Motor with Plus Pack and the Long Range Dual Motor with Plus and Performance Pack priced at $83,900 and $89,900, respectively. Now, Polestar offers the Pilot Pack as standard for all variants, with the cheapest trim (Long Range Dual Motor with Pilot Pack) costing only $73,400. The Pilot Pack includes Pilot Assist driver assistance aids, Park Assist Pilot, Lane Change Assist, and Head-up Display.
Polestar 3's Plus Pack costs $5,500 extra and includes a 1,610-watt Bowers & Wilkins premium audio system with 25 speakers and a fresh air subwoofer, 21-inch Plus wheels, and heated rear seats. The Performance Pack includes upgrades like Polestar-engineered chassis tuning, 22-inch Performance forged wheels, and Swedish gold accents. It also comes with a software performance upgrade that boosts output to 517 hp, enough for a 0-60 mph sprint in 4.6 seconds instead of 5.0 seconds on non-performance variants.
New in the lineup is also the Polestar 3 Long Range Dual Motor variant that includes the Pilot and Performance Pack but not the Plus Pack, for $79,400. Like for like, the Polestar 3 is thus $5,000 more affordable than previously announced, but with new variants that lower the entry price even more. Hopefully, the Swedish carmaker can source battery materials and components from North America. This would also make the Polestar 3 eligible for a $7,500 federal tax credit, now offered only on lease contracts.
Despite growing sales, Polestar has not yet seen a path to profitability. This has prompted Volvo to limit its losses and stop funding Polestar. However, the two brands will continue to share R&D and manufacturing efforts. They are both owned by China's Geely, so the Chinese carmaker is expected to step in and replace Volvo as the main sponsor. Polestar acknowledges the difficult market conditions and recently announced plans to lay off 15% of its workforce.
Aside from that, Polestar's plans continue as announced, with the flagship SUV Polestar 3 already starting production at the company's factory in Chengdu, China. The three-row SUV is also scheduled to begin production in the US this summer at Volvo's factory in South Carolina. However, given new market conditions and a marked slowdown in EV sales, Polestar is reconsidering its sales strategy.
Specifically, the Polestar 3 will start at a much lower price than the $83,900 announced last year. Previously, two variants of the Polestar 3 were planned, with the Long Range Dual Motor with Plus Pack and the Long Range Dual Motor with Plus and Performance Pack priced at $83,900 and $89,900, respectively. Now, Polestar offers the Pilot Pack as standard for all variants, with the cheapest trim (Long Range Dual Motor with Pilot Pack) costing only $73,400. The Pilot Pack includes Pilot Assist driver assistance aids, Park Assist Pilot, Lane Change Assist, and Head-up Display.
Polestar 3's Plus Pack costs $5,500 extra and includes a 1,610-watt Bowers & Wilkins premium audio system with 25 speakers and a fresh air subwoofer, 21-inch Plus wheels, and heated rear seats. The Performance Pack includes upgrades like Polestar-engineered chassis tuning, 22-inch Performance forged wheels, and Swedish gold accents. It also comes with a software performance upgrade that boosts output to 517 hp, enough for a 0-60 mph sprint in 4.6 seconds instead of 5.0 seconds on non-performance variants.
New in the lineup is also the Polestar 3 Long Range Dual Motor variant that includes the Pilot and Performance Pack but not the Plus Pack, for $79,400. Like for like, the Polestar 3 is thus $5,000 more affordable than previously announced, but with new variants that lower the entry price even more. Hopefully, the Swedish carmaker can source battery materials and components from North America. This would also make the Polestar 3 eligible for a $7,500 federal tax credit, now offered only on lease contracts.
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