Polestar sidesteps tariffs on Polestar 3 with start of US production

Polestar will be able to avoid the significant tariffs the US government is slapping on Chinese-made EVs as it has now started manufacturing the Polestar 3 crossover at its facility in South Carolina. The Swedish company previously planned to import the EV from China.

In response to the heavy 100 percent import duty the US wants to impose on China-made EVs, Polestar has started making the Polestar 3 in a Volvo-owned plant in South Carolina. According to CEO Thomas Ingenlath, most of the output will be sold locally, and some units will be exported to Europe. Existing Polestar 3 production in Chengdu, China, will continue.

Polestar estimates the plant will reach full production capacity in two months, although the capacity has not been revealed. However, buyers will begin to take deliveries of the performance EV in the US in September, with European deliveries to follow shortly.

Polestar delivered 3,555 units of the Polestar 2 in H1 2024 in the US and will seek to build on the demand with the Polestar 3.

The EV maker will build the Polestar 4 in South Korea but will continue to import the battery-powered SUV to the US from China before the plant is ready, meaning buyers will pay significantly more due to the tariff. Polestar also wants to manufacture in Europe.

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