Nearly half of Polestar's US sales for its model 3 in the quarter through to March came from hefty discounts targeting disgruntled Tesla owners, an executive for the Swedish EV maker said on Thursday after it reported a 76% surge in global deliveries.
The offer, which gives Tesla owners in the US discounts of up to $20,000 (R388,133) towards a Polestar 3 lease, helped power global sales to 12,304 vehicles in the first three months, Polestar's US head of sales, Jordan Hofmann, told Reuters.
The Polestar discount campaign appears to be an attempt to take advantage of a backlash against CEO Elon Musk's Tesla brand amid slower than expected EV demand and worries that higher tariffs may raise vehicle prices.
Tesla's stock has dropped 32% so far this year from poor sales and record trade-ins amid criticism of Musk over the billionaire's controversial role in US President Donald Trump's administration as he works to slash federal government spending.
A long-range, dual-motor Polestar 3 with all the upgrade packs would cost around $93,000 (R1.8m), the Polestar website said — but for Tesla owners using the discounts, the price would sink to $73,000 (R1.4m). A Tesla Model S starts at just under $80,000 (R1.6m).
"We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March. We are running a similar campaign for April," a spokesperson for Polestar told Reuters.
The offer is valid for its Polestar 3, produced in a Volvo Cars factory in South Carolina.
Potential price rise
Polestar joins a throng of carmakers scrambling for market share as shoppers in the US and beyond scour dealer lots to try to snap up a car purchase before any potential rise in prices from the higher US tariffs.
Ford Motor and Stellantis offered deep discounts starting this month, and Hyundai committed to keeping prices stable.
Polestar has been trying to expand its production base in the US and reduce dependence on China, a strategy more significant after Trump imposed sweeping tariffs on the world's largest auto market.
US and other carmakers are trying to enhance their manufacturing footprint. General Motors last week told workers it would increase output at a factory in Indiana, and Hyundai committed to a $21bn (R407.62bn) investment in the US.
Polestar said earlier campaigns had been positive.
"The numbers speak for themselves. This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible," Jordan Hofmann, Polestar's head of sales in the US, said in a LinkedIn post a month ago.
The company did not provide additional details or quantify the impact of the previous promotion.
US EV maker Lucid also hopped on the trend, offering discounts of up to $4,000 (R77,640) for purchases of its luxury Air sedans if a customer trades in a Tesla vehicle.
For Polestar, backed by China's Geely, boosting sales is crucial as it burns through cash to hike production. Last year it underwent an executive shakeup and appointed a new CEO with the aim of getting closer to profitability, raising sales and securing a steady line of funding.
Polestar lures disgruntled Tesla owners with discounts
Tesla's stock has dropped 32% so far this year
Image: Supplied
Nearly half of Polestar's US sales for its model 3 in the quarter through to March came from hefty discounts targeting disgruntled Tesla owners, an executive for the Swedish EV maker said on Thursday after it reported a 76% surge in global deliveries.
The offer, which gives Tesla owners in the US discounts of up to $20,000 (R388,133) towards a Polestar 3 lease, helped power global sales to 12,304 vehicles in the first three months, Polestar's US head of sales, Jordan Hofmann, told Reuters.
The Polestar discount campaign appears to be an attempt to take advantage of a backlash against CEO Elon Musk's Tesla brand amid slower than expected EV demand and worries that higher tariffs may raise vehicle prices.
Tesla's stock has dropped 32% so far this year from poor sales and record trade-ins amid criticism of Musk over the billionaire's controversial role in US President Donald Trump's administration as he works to slash federal government spending.
A long-range, dual-motor Polestar 3 with all the upgrade packs would cost around $93,000 (R1.8m), the Polestar website said — but for Tesla owners using the discounts, the price would sink to $73,000 (R1.4m). A Tesla Model S starts at just under $80,000 (R1.6m).
"We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March. We are running a similar campaign for April," a spokesperson for Polestar told Reuters.
The offer is valid for its Polestar 3, produced in a Volvo Cars factory in South Carolina.
Potential price rise
Polestar joins a throng of carmakers scrambling for market share as shoppers in the US and beyond scour dealer lots to try to snap up a car purchase before any potential rise in prices from the higher US tariffs.
Ford Motor and Stellantis offered deep discounts starting this month, and Hyundai committed to keeping prices stable.
Polestar has been trying to expand its production base in the US and reduce dependence on China, a strategy more significant after Trump imposed sweeping tariffs on the world's largest auto market.
US and other carmakers are trying to enhance their manufacturing footprint. General Motors last week told workers it would increase output at a factory in Indiana, and Hyundai committed to a $21bn (R407.62bn) investment in the US.
Polestar said earlier campaigns had been positive.
"The numbers speak for themselves. This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible," Jordan Hofmann, Polestar's head of sales in the US, said in a LinkedIn post a month ago.
The company did not provide additional details or quantify the impact of the previous promotion.
US EV maker Lucid also hopped on the trend, offering discounts of up to $4,000 (R77,640) for purchases of its luxury Air sedans if a customer trades in a Tesla vehicle.
For Polestar, backed by China's Geely, boosting sales is crucial as it burns through cash to hike production. Last year it underwent an executive shakeup and appointed a new CEO with the aim of getting closer to profitability, raising sales and securing a steady line of funding.
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