The Swedish manufacturer of Polestar electric vehicles saw its first quarter sales of 76% compared to the same period in 2024, having started offering discounts and other promotions, including those aimed at locking to the Tesla owners.
Polestar sold 12,304 cars during the first three months of the year compared to 6,975 in the first quarter of 2024.
“We are on the right track and we do the right things,” said Michael Lohscheller, Polestar’s chief executive, in a statement. “With a more active sale model. More retail partners and attractive cars. We provide results.”
One of Polestar’s most “active sales strategies” was to use Tesla’s depreciation due to CEO Elon Musk’s participation in Doge. The company has recently started offering up to $ 5,000 in discounts for Tesla drivers looking to rent the company’s new crossover Polestar 3.
Polestar makes the Polestar 2 Electric Fastback, the Polestar 3 Electric SUV, and soon the Polestar 4 Electric SUV Coupe. The automotive industry does not break out sales numbers with models, but in March after Polestar began offering the Conquest Tesla bonus, Sales Head Jordan Hofmann Posted in Linkedin that orders for Polestar 3 were “incredible”.
Tesla was also based on discounts to boost sales numbers and they have influenced its lower line.
It will not be clear for a few months how discounts have affected Polestar’s margins. The automaker said in February that he would do delay Its full year and its profits in late 2024 until the end of April, after securing a $ 450 million loan to keep the company in life as it burns through cash.
The durability of Polestar’s discounts is unclear, as the fall from President Donald Trump’s sweeping invoices and the subsequent trade war could lead to cars. Polestar manufactures in the US and China and plans to make Polestar 4 in South Korea in the second half of 2025.
“We are closely monitoring and evaluating the volatile geopolitical environment and will adapt to the needs,” Lohscheller said.
Polestar seems to make changes to his business in China, though it is not yet clear whether it is an answer to the geopolitical climate or just a shift in the strategy.
In a deposition on Thursday, Polestar, owned by Geely, China, noted that she had agreed to end a joint venture in China with Xingji Meizu, a mobile phone company and electronic consumers. The two united in 2023 to create an operating system for Polestar cars sold in China and will now transfer JV distribution rights to Polestar.
JV, called Polestar Times Technology, will settle any debt debts before it ceases to operate, according to the deposit and will transfer “some digital and other assets from JV with weapons” so that Polestar will continue sales, customer service and distribution to Chinese.
The deposition notes that the parties end the JV “as a result of a change in catering and market strategy”, but that Polestar will remain “fully committed to the Chinese market”.
“China remains an important long -term market for us and our progress is to serve existing customers and manage our trademark on our entirely ownership,” said Mike ofiara, a spokesman for Polestar, said Tech.
This article has been informed with a statement by Polestar about China’s plans.
