EV maker Polestar bids to lure disgruntled Tesla owners with discounts
Technology
EV maker Polestar bids to lure disgruntled Tesla owners with discounts
(Reuters) - Polestar is offering discounts of up to $20,000 towards a lease of its Polestar 3 vehicle for current Tesla owners in the United States, as the Swedish EV maker targets drivers shunning CEO Elon Musk's car brand.
The campaign on Polestar's website appears to be an attempt by the company to lure disgruntled Tesla customers with the discounts amid slower-than-expected EV demand and worries that higher tariffs may raise vehicle prices.
A long range, dual-motor Polestar 3 with all the upgrade packs would cost around $93,000, the website says, but for Tesla owners using the discounts, the price would sink to $73,000. A Tesla Model S starts at just under $80,000.
"We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for March. We are currently running a similar campaign for April," a spokesperson of Polestar told Reuters.
The offer is valid for its Polestar 3, which is produced in a Volvo Cars factory in South Carolina.
Tesla's stock has dropped 32% so far this year from poor sales and record Tesla trade-ins amid criticism of Musk due to the billionaire's controversial role in the Trump administration as he works to slash federal government spending.
POTENTIAL PRICE RISE
Polestar has been trying to expand its production base in the United States and reduce dependence on China - a strategy more significant now after U.S. President Donald Trump imposed sweeping tariffs on the world's largest auto market.
Indeed, both U.S. and other automakers 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 $21 billion investment in the U.S.
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 U.S., said in a LinkedIn post a month ago.
The company did not provide additional details or quantify the impact of the previous promotion.
U.S. EV maker Lucid also hopped on the trend, offering discounts of up to $4,000 for purchases of its luxury Air sedans if a customer trades in a Tesla vehicle.
For Polestar, backed by China's Geely (GEELY.UL), 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.
