Polestar betting two new SUVs will help it take on even its gas-powered rivals
Swedish EV brand Polestar (PSNY), with a revamped ownership structure and new funding in place, is hoping two new SUVs can get the automaker back on track.
Though Polestar delivered approximately 54,600 vehicles last year, one of the highest delivery figures coming from a pure-play EV maker, Polestar missed its own delivery guidance of 60,000, which itself was lowered from the 60,000-70,000 delivery target it had in May (also lowered from the 80,000 target it gave last March).
It’s got some tough competition in the crossover EV SUV segment, where Polestar’s current offering, the Polestar 2, plays alongside the Tesla Model Y and Ford Mustang Mach-E. But two new offerings could help change that.
Yahoo Finance caught up with Polestar CEO Thomas Ingenlath at the New York International Auto Show, where the automaker had the Polestar 3 full-size EV SUV and upcoming Polestar 4 coupe SUV on display.
“Polestar 3 is so important because it’s an SUV. We were, of course, waiting for an SUV, a true SUV in our portfolio,” Ingenlath said, adding that Polestar 3 was “the heart of the company, [with] the premium performance.”
The Polestar 3, which will be delivered to customers this summer, also had a big price cut — from the original starting price of $83,900 to $73,400 — making it eligible for the federal EV tax credit of $7,500 once production begins in South Carolina later this year. A special Launch Edition will come with two options packages and have an MSRP of $78,900.
While these prices aren’t exactly cheap, sometimes it pays to play in the upper ends of the luxury spectrum where buyers aren’t so price-sensitive and margins can be thicker.
“That’s exactly where we are aiming with these cars,” Ingenlath said when asked about reaching luxury buyers. “What’s crucial is what type of desirability brings a car to the table, how technology-wise advanced [is it]. That’s what our customers are searching for.”
The Polestar 4 is the 3’s more athletic and attractive little brother, if you will — sleeker and more angular. It’s so angular in fact that it doesn’t have a rear windshield; there’s a camera for looking back. Inside, the Polestar 4’s sporty theme continues with race car-like sport seats, a flat-bottom steering wheel, and dual landscape-oriented touchscreens. Ingenlath, a former auto designer at Volvo, believes a “cool Scandinavian look” is also a core part of the company.
While Polestar 4 is going to be cheaper than the 3 (preliminary pricing is $62,900 for the long-range, dual motor version, $54,900 for the single motor), it’s not exactly cheap either, and therefore still targets a more affluent buyer.
The premium luxury segment is a tough one, especially when looking at EVs. But Ingenlath believes other EVs in the segment aren’t its only competition — it can take on all rivals in that competitive price segment, EV or otherwise.
“For us actually, it doesn’t make a difference who are we competing with. Is it a combustion engine car? Is it an electric car? We are in that performance premium segment out to convince [buyers] with the greatness of our products.”
Polestar hopes these new SUVs will move the needle sales-wise beyond the 50,000 or so units of the Polestar 2 it currently sells globally. Looking longer term, Polestar is aiming to have total annual production volume of over 155,000 EVs by 2025 and a gross margin in the “high teens,” with cash flow break-even status reached in 2025 as well.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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