Charging Ahead: Polestar Combines New Models with Bold Plan for Expansion
![Charging Ahead: Polestar Combines New Models with Bold Plan for Expansion](http://evannex.com/cdn/shop/articles/Polestar_{width}x.png?v=1723563827)
This is a make-or-break year for Polestar, as the brand unleashes two new all-electric models: the Polestar 3 and 4. After years of putting all their eggs in the Polestar 2 basket, this new duo brings some much-needed variety to the lineup, and if well executed, their new darlings have the potential to save this otherwise struggling EV manufacturer.
For those unfamiliar, Polestar and Volvo have a storied history dating back to 2009. At the time, Polestar Racing—a successful Swedish motorsports team—was hired by Volvo to bring some sportscar enthusiasm back to the brand. Tasked with transforming Volvo’s domesticated grocery haulers into track toys, Polestar Racing gave turbo brick enthusiasts a pair of track-ready sport trims for both the C30 and V60. More importantly the partnership set in motion a new vision for what Volvos can be. On the heels of that success, Volvo acquired Polestar Racing in 2015 and tasked it with developing an entire line of all-battery electric vehicles that not only stayed true to the Polestar pedigree, but remained elegant, comfortable, and shall we say “Volvo-Enough” to win back the hearts of the world.
This love story didn’t last, however. Volvo shed 62.7% of its Polestar stake earlier this year. On the surface, the move gives Polestar more freedom, but it also means Polestar has to stand on its own two feet, carving out an identity separate from Volvo. And while the elegant Polestar 1 made the world swoon, it sold for $155k and was limited to just 1500 units, making the Polestar 2 the company’s first mass-produced vehicle.
And here’s where it gets troubling: Polestar’s sales figures remain shaky. In 2023, the brand sold just 6,736 vehicles in the US—a drop of over 25% from the year before. And if you’re keeping score, the first quarter of 2024 didn’t offer much relief either. Global deliveries came in at just 13,000 vehicles—a solid improvement, but still down 17.5% from the same time last year.
Adding to the headaches, Polestar is dealing with production delays. The Polestar 3, which is supposed to be a global hit, has seen its Australian launch pushed back. Originally set for early 2024, it’s now slated for late August. And while the Polestar 4 is expected to hit the US in the fall, it’s been slow to roll out elsewhere.
While the Volvo stake in the partnership has been drastically reduced, there are still some architectural and financial synergies in play here. The Polestar 3 shares its platform with the Volvo EX90, and the Polestar 4 is built on Geely’s popularized SEA architecture, so Volvo and Geely are doing all they can to help keep costs down. The branding though, that’s up to Polestar.
As one of the younger players in the EV world, Polestar profitability isn’t nearly as important as its growth. Polestar plans to hit seven new markets next year, including France, Brazil, and Thailand. But expansion isn’t just about entering new markets; it’s about creating a brand identity, so to say a lot is riding on the success of the Polestar 3 and 4 is a defining understatement. This may be Polestar’s only shot at making a splash in an EV market that’s already starting to feel a bit crowded.
But don’t count Polestar out just yet. With fresh models hitting the road (hopefully) soon and plans for expanding their global presence, Polestar has the potential to drive sales through its niche lifestyle branding exercise, but it’s still a costly gamble--one that will either solidify Polestar’s place in the market, or reduce them to a footnote in automotive history.