Polestar is kicking off 2025 with a strong start, reporting a 76% year-over-year (YoY) jump in retail sales for the first quarter. The Swedish EV brand sold an estimated 12,304 vehicles globally from January to March—more than enough to signal a significant turnaround following a rocky 2024.
The surge in sales is credited to a combination of factors: an expanded vehicle lineup, attractive incentives, and a shift to a more active sales model. CEO Michael Lohscheller, who took the reins in late 2024 to revitalize the brand, praised the progress and hinted that this momentum is only the beginning.
“We are on the right track and doing the right things,” Lohscheller said in a statement. “With a more active selling model, more retail partners and attractive cars, we are delivering results.”
Also playing a role in the recent sales success is Polestar’s “Tesla conquest” strategy—offering discounts of up to $20,000 for Tesla owners to switch to a Polestar 3. The promotion has reportedly spurred a spike in orders, particularly in Canada and the U.S., where the brand is aiming to strengthen its foothold amid new U.S. tariffs on Chinese-made EVs.
Polestar, which currently manufactures vehicles in both the U.S. and China, is looking to insulate itself from geopolitical uncertainty by diversifying production. Plans are in place to begin building the Polestar 4 for the North American market in South Korea by the second half of 2025.
The automaker has already started production of the Long Range Single Motor (LRSM) variant of Polestar 3 at the Volvo-owned plant in Charleston, South Carolina.
Polestar’s lineup now includes the updated Polestar 2 sedan, the new Polestar 3 SUV, and the Polestar 4, a sleeker, more affordable electric crossover.
