As Thomas Ingenlath piloted the Polestar 3 with unbridled enthusiasm, the sleek sports car’s potent engine propelling him smoothly past speed limits and through twisting curves, his beaming smile betraying the vigor he felt at a surprisingly youthful 59.
As the Polestar CEO glides effortlessly along the scenic roads near Spanish Bay, just north of Pebble Beach, during Monterey Car Week, he makes an unexpected claim: “You actually can push this automobile.” Throughout the drive, he extols the SUV’s ability to seamlessly blend comfort and ease with spirited handling, echoing the well-honed driving dynamics that loyal fans of the brand’s initial offerings, the hybrid Polestar 1 and electric Polestar 2, have grown accustomed to and appreciate?
As he lounges in his unobtrusive swimsuit, the subtle hue rendering him almost indistinguishable from the interior of the sleek SUV, a bright splash of yellow against his chest serves as the sole visual anchor. The design harmonizes seamlessly with the Polestar automobile’s persona: a refined, understated elegance combined with the razor-sharp performance characteristic of its machines.
Secure the Electronic Vehicle (EV) floor amidst rapidly shifting political terrain.
However, the Polestar 3 signals a bold new direction for the model in the US. streets.
Although the Polestar 3 SUV that Tomasz Ingenlath showcased to visitors in Monterey was manufactured in China, the first American-assembled models of this vehicle have just started rolling off the production lines at.
The same production facility has been producing vehicles for Volvo, a subsidiary of Chinese conglomerate Geely Holding’s ownership. Polestar, a subsidiary of Volvo under the Geely umbrella, is navigating challenging headwinds as it expands its US presence amidst newly implemented tariffs on Chinese electric vehicles.
As the Polestar 2 is manufactured in Gothenburg for the global market, Polestar 3 SUVs destined for the US market will be produced in South Carolina, rather than Sweden.
“Polestar 3 production is firmly grounded,” Ingenlath notes.
While seemingly secure, the foundation falters, ever vulnerable to the unpredictable tides of change. Within the United States, Ingenlath envisions a significant surge in electric vehicle (EV) demand. Will we need to exercise patience in anticipation of this development’s unfolding pace? “We have to see,” he insists. “Notwithstanding, what specifically concerns me about our company’s objectives is…”
Ingenlath expresses a desire for adoption fees to be even more substantial; conversely, he’d be most pleased if US politics were “just a tad more stable.”
He’s watching the election carefully. The constant din surrounding him was deeply unsettling. When creating a high-end automotive brand, consistency is paramount. To ensure consistency in our mannequin politics, pricing, and other key areas, we believe it’s essential to establish a stable foundation for decision-making. This would enable us to operate with greater confidence and transparency, ultimately benefiting both our customers and internal stakeholders. And you can’t react on a daily basis; you already know that’s impossible to do week by week or even monthly. You want several years… to make significant financial decisions.
The development process for vehicles like the Polestar 3 typically takes around five years from concept to production. New tariffs imposed by the US government on electric vehicles manufactured in China and imported into the country are taking effect. Which emerged overnight and are now an actual risk.
Funding for EVs
Polestar faces a multitude of challenges, but that’s just one pressing concern at present. In January 2024, Volvo undertook a significant strategic shift by divesting a substantial stake in its own organization. Ingenlath minimizes the significance of the deal, pointing out that Volvo still retains a significant stake in the company, amounting to around 18%. “That’s not insignificant,” he says. “If you hold a significant stake in a company, say around 20%, you tend to have strong opinions about its performance.”
Polestar must address the ongoing issues observed. Ingenlath notes that the change in possession has not led to a fundamental transformation of the company under his leadership. Regardless, he emphasizes that paying attention to fundamentals is always a good idea.
“It’s crucial for us to demonstrate the execution capabilities we have,” Ingenlath notes regarding his responsibilities to the banks, “given the exceptional vehicles we’re producing, and the efficient market launch, delivery, and sales processes in place.”
Ingenlath is coy about the possibility of seeking additional funding to drive Polestar’s ambitious plan forward, instead focusing on making the brand self-sufficient.
A wager on SUVs
That aspect is crucial to the overall strategy. In a market where SUVs reign supreme in the United States, this sleek and refined sedan is fighting for attention amidst the competition. He describes it as “a moderately compact European sedan, right here, that won’t meet the needs of a family.”
While the Polestar 3’s starting price of $73,400 is substantial, it should offer more bang for one’s buck than its competitors, especially for affluent families willing to invest in a premium electric vehicle. The Polestar 2’s larger counterpart boasts a more imposing physique, towering stance, and generous interior space while retaining an identical driving persona?
To pave the way for Polestar’s future product lineup, achieving significant gross sales growth is crucial.
The Polestar 2’s compact SUV sibling maintains the iterative naming convention while sacrificing rearward visibility for a sleeker design and a lower price point, starting at $54,900.
The Polestar 2, a sleek and stylish sedan that embodies the brand’s commitment to innovative design, stands out as a critical component of the company’s strategy – one that takes precedence over government-backed EV incentives, according to Ingenlath. As we strive to captivate customers, our sales representative emphasizes the undeniable appeal of Polestar vehicles, suggesting that once people experience their alluring nature, they’ll be eager to take one home.
The highly anticipated Polestar 4 is slated for a late-year arrival, while the Polestar 5 is expected to debut in 2025, marking an exciting future for the brand’s electric lineup. Polestar’s aggressive timeline has yielded a significant milestone: the company now offers its flagship Polestar 2 as its sole product in the highly competitive US market. marketplace for almost 4 years.
The intention was misaligned from the start. The Polestar 3’s launch has been crucially delayed due to a separate issue that has also impacted its corporate cousin, the Volvo XC40 Recharge. Notwithstanding, Ingenlath emphasizes that seamless knowledge sharing with Volvo is crucial for Polestar’s ability to rapidly innovate and iterate.
“Why develop our own autonomous driving assist systems when we could outsource?” “In reality, Volvo offers a robust knowledge foundation that perfectly supports the development of our desired premium vehicle.”
The planned know-how sharing initiative will continue unaffected by Volvo’s partial divestiture. Volvo isn’t its solely accomplice. Polestar was an early adopter of this trend, successfully delegating all in-car interfaces to Google.
“That’s one of the most compelling and seamless success stories of effectively integrating technology,” he remarks, an initial sentiment initially greeted with scepticism. What did people mean by their skepticism about my endeavors? Is Google really rolling out a new product that gets up close and personal with your bed? The phrase ‘Blah, blah, blah’ has sparked widespread incredulity. Jesus, our prospects like it. “It sets a new standard for user friendliness.”
The pivotal moment for Polestar’s future arrives with the imminent launch of the highly anticipated Polestar 3, a development Ingenlath confirms is just weeks away.
