Not Dead Yet: Are Reports of the Demise of Polestar Premature?

Speculation about the demise of Polestar began swirling with the news that Volvo would reduce its stake and financing, letting parent Geely be the backstop for the brand that makes premium electric vehicles. It continues as its stock has fallen below a dollar, its listing on major exchanges is in jeopardy, and the company delayed reporting its first-quarter earnings. The signs of distress come as other electric startups struggle. Mighty Tesla has seen sales and earnings drop while newcomers like Rivian and Lucid report losses and Fisker is fighting for its life.

Polestar is part of this class of electric vehicle newcomers, but likes to think it has some key differences. It is a startup born of a legacy automaker, with access to platforms, plants, components, and tech from Volvo and Geely on top of the work it is doing in-house. It is not easy to launch a new brand, but CEO Thomas Ingenlath thinks Polestar has come a long way in a short time. It has about 150,000 vehicles on the road now, more than some of the other EV startups it is lumped in with. Polestar still has a tough road ahead, but Ingenlath thinks the proof points are there and the goals are not overly ambitious. He would be happy if total brand sales exceeded 100,000 units annually.

After missed global sales targets in 2023, 2024 will be a year of transformation. Polestar is on the brink of a major product expansion—easy to do when you were subsisting with a single model. But the lonely Polestar 2 sedan is joined by the 2025 Polestar 3 midsize SUV that is on its way to dealers now. And later this year the Polestar 4, a smaller five-passenger SUV coupe, will be offered in North America and Europe, bringing the lineup total to three. The newcomers compete in fast-growing segments but these utility vehicles should prove more popular than relying on a single sedan for sales, especially in SUV-crazy North America.

Polestar 3 En Route

The most important addition is the 2025 Polestar 3, a midsize SUV that debuts with the Launch Edition and is followed shortly after by the regular model. The Polestar 3 is the first vehicle on Volvo’s new dedicated electric vehicle platform, SPA2 (Scalable Product Architecture), that is also being used by Volvo’s EX90 three-row electric crossover.

The 2025 Polestar 3 Launch Edition comes from a plant in Hangzhou Bay, China, and the first batch is on a boat chugging for American shores with deliveries to start in June. The U.S. and Europe are the first markets to get the P3. The China-built models will only be exported for a short time because the Volvo plant in Charleston, South Carolina, has been retooled and is making preproduction versions of the regular model. Production for sale for the U.S., Canada, and European markets should begin in late July, with deliveries expected to start in August. The U.S. is expected to be its largest single market, equivalent to sales for all of Europe. The decision to build the P3 in the U.S. was made years before the current tariff environment that penalizes parts content from China, but the timing is proving fortuitous.

Ingenlath says there are a healthy (but undisclosed) number of orders waiting to be filled for customers who have had to be patient. The order books for the Polestar 3 opened a year ago, but software issues plagued the new SPA2 models, forcing an eight-month delay to address them.

The Polestar 3 launches as a long-range SUV with dual motors and an optional Performance Pack. Polestar has confirmed there will be a long-range, single-motor, rear-drive version of the Polestar 3, promising details later this year on the timing of the rollout. Engineers are already testing it. We also expect the lifecycle of the P3 will include a more affordable base model with a smaller battery.

Even this midsize SUV will not aspire to mainstream volumes. It will be measured in the tens of thousands and must have the margin to be successful at that level, Ingenlath says.

Polestar 4 Coming Stateside

The Polestar 4 compact crossover is already available in other markets, starting in China at the end of 2023. In January it went on sale in Europe and Australia. Order books for the 2025 Polestar 4 opened in April for North America. Production of U.S.-spec models will begin in August and start arriving in November.

The Polestar 4 is also built in China, but a plant in Busan, South Korea, will add production in late 2025 for export to North America. The Polestar 4 is on Chinese parent Geely’s SEA (Sustainable Experience Architecture) platform and will be the quickest Polestar in the lineup with a 0-60 mph time of about 3.8 seconds.

Ingenlath said he did not mean to launch the Polestar 3 and 4 so close together but circumstances (software snafu and delays) led to it. Things don’t always work as planned, he says, but in the end it will all be OK.

Polestar 5 and 6 as Niche Models

Still to come are the Polestar 5 four-dour grand tourer and its convertible counterpart the Polestar 6. The Polestar 5 is an aluminum-bodied vehicle based on the Precept concept unveiled in 2020. Polestar developed it on a dedicated platform, targeting the Porsche Taycan. The Polestar 5 is being purpose-built at a Geely plant in Chongqing, China, and will be produced in low volumes—think single-digit thousands. Mules are running around now. Ingenlath says they will move from pre-production to production models by the end of the year or early in 2025. It will be followed by the Polestar 6 convertible which uses the same platform and also has an aluminum frame, but removes the second row and shortens the wheelbase for a 2+2 seater with the same battery size and range.

Does It Matter Where the Money Comes From?

Ingenlath says funding from parent Geely instead of big brother Volvo does not change any mandates for Polestar. The brand position was defined years ago and will not change, he tells MotorTrend. Polestar will continue to be a design-driven sporty brand. It remains part of one big family and shares common values such as a commitment to sustainability. Volvo retains an 18 percent stake, down from 48 percent. That is still a heavy connection; more than a strategic partnership, Ingenlath says. And Volvo and Polestar are neighbors, headquartered in Gothenburg, Sweden. They share tech, components, platforms, and factories.

Polestars are serviced at Volvo dealerships. Polestar has more than 150 showroom spaces, including 28 in the U.S. and three in Canada. The goal is to continue adding locations in the 26 countries where Polestars are sold. In Sweden, Polestar is looking to double or triple its showrooms. North America will also expand but no numbers are being released.

Incentives and Competition

Incentives have become brutal for mass-market EVs, but the premium segment is not as affected and Polestar has the luxury of some pent-up demand for the new models. The brand has reduced some pricing but has not followed Tesla with deep discounting. Ingenlath thinks the pricing is attractive and competitive, in part because he sees the brand as competing more with Porsche than Tesla. And while all Polestars are pure EVs, he thinks they compete with luxury models with internal combustion engines, as well: BMW X5 as well as the iX; Tesla Model Y but also Audi Q7.

The Tesla Model Y and Model 3 are not deemed competitive because they are not premium enough. Polestars have two screens, not one, and more amenities than cars designed to be sold at a cheaper price, Ingenlath says. “We always said we won’t build a computer on wheels, we actually build real cars with great quality and emotional reward.”

Separating Polestar From Volvo

Both Polestar and Volvo have Scandinavian design as a common base—Ingenlath led Volvo design before assuming the reins at Polestar. But the CEO feels Polestar has differentiated itself well enough from Volvo both in terms of brand representation and products. Volvo is an inclusive, non-confrontational, safety-cherishing brand with warm and comforting Scandinavian design. “It’s everybody’s darling.”

That leaves room for a brand that is more edgy, exclusive, design-driven, driver-oriented, with some motorsports DNA, key partnerships to enhance performance, and Scandinavian design that embraces a cool tech approach that is more German.

The differences between the three-row Volvo EX90 and the two-row Polestar 3 showcase the divergence between the brands. Ingenlath calls them poster boys for taking the same tech base and building very different vehicles. The Polestar is also lower and more muscular while the Volvos are more family-oriented and embrace more aspects of autonomous driving. While there is some overlap in price, the Volvo lineup extends lower than the Polestar 2 with the EX30 while the Polestar 5 and 6 will reach as high as $160,000.

Overall, Polestar still needs to build brand awareness. Enthusiasts know Polestar and appreciate its passion but Polestar is better known in Europe than in North America, Ingenlath says. The new models should help grow awareness.

It won’t be easy. It is a difficult market for all automakers, including those with long histories and storied name. Startups face even tougher hurdles. “It’s not easy to launch a brand. Nobody said that,” says Ingenlath. But Polestar’s Scandinavian stoicism remains unwavering.