The wind of price cuts may be blowing through the EV industry, but one brand that is not planning to follow suit is Polestar. The luxury EV maker has confirmed it won’t follow Tesla’s lead in lowering its cars’ prices.
According to Polestar CEO Thomas Ingenlath, Polestar focuses on creating its niche in the high-end segment of the EV mark.
Ingenlath remarked about the EV industry that Tesla is “concentrating to go mass market in the future to compete with the likes of Volkswagen and Toyota, Polestar’s ambition is to go fully into this premium, luxury sports car segment. We are not aiming to produce 10 million cars per year.” (via Automotive News)
Ingenlath’s approach can hardly be faulted, given the nature of the Polestar brand. It doesn’t have the brand awareness nor an insulating profit margin to wade into a race-to-the-bottom pricing war with the likes of Tesla, Volkswagen, and Toyota.
The company is also relatively young in the EV space, only starting selling EVs in 2020. In addition, Polestar does not produce or aim to produce EVs in large numbers.
Polestar is actually moving in the opposite direction. It plans to release even pricier EVs in the US market to solidify itself in the luxury segment. The Polestar 3 will start at $85,000 and will be available this year. It will be followed by Polestar 4, Polestar 5, and Polestar 6 in subsequent years.