Polestar takes advantage of Tesla sales slump
Polestar is benefitting from Tesla’s well-publicised slump as it revealed a huge growth in global sales for the first three months of 2025.
The Swedish company, which is listed on the US Nasdaq, has sold an estimated 12,304 cars since the turn of the year, 76 per cent up compared to the same period in 2024.
In a statement released with the figures, Polestar said its sales were helped by a “growing uptake of newer models and the ongoing transition to an active selling model”.
Its performance has also been undoubtedly boosted by the hit Elon Musk’s Tesla has taken since the world’s richest man became closely associated with President Donald Trump’s administration.
Addressing the slump in Tesla sales and the impact on Polestar, chief executive Michael Lohscheller said: “In terms of competition, yeah, of course, when there is, let’s say, uncertainty, or you are not happy with certain things, then you you consider a different brand.
“But we have customers from many different brands, right?
“They switch from, let’s say, a diesel or gas power train to an EV, so it’s a mix of bags, but we focus on what is in our control, and that is certainly the active selling model and more new products. And I think those really are the key drivers.”
‘Let’s walk before we can run’
On the prospects for the Swedish auto marque, whose shares are mainly held by Volvo and Chinese giant Geely, its chief executive added: “Well, as I’m a runner, and I did the London Marathon a few times, I always say, hey, let’s walk before we run.
“But we also want to have a premium approach.
“So we see Polestar is a premium brand, so we always want to have a certain price premium against a basket of competitors.
“We don’t really say hey, we want to be the number one volume EV company.
“We want to have this premium character, but, of course, we want to grow volume.
“That’s why Q1 was a good start. But, but more to come, and this, this premium character, is very important for us.”
Polestar and Trump’s tariffs
Like most public companies across the world, Polestar’s share price has been on a rollercoaster ride over the last week since Trump’s tariff announcement.
Asked what impact the tariffs will have on his company, Lohscheller said: “We live in a world where localisation is very important, probably even more important than in the past.
“That’s why, with regard to the US, we use the Volvo plant in Charleston, in South Carolina. That’s very helpful.
“Polestar three has done a really good job in the US. We have a lot of momentum. We’re up 74 per cent in the US.
“But the way forward is really localisation, probably even deep localisation, including suppliers, but that’s obviously something to look at.”
Lohscheller wouldn’t be drawn on whether the UK is in the running for the location of a new factory which will be tasked with manufacturing the Polestar 7.
An official announcement is expected in the coming weeks.
Polstar is expected to announce its results for 2024 later this month.
In the UK, the brand’s revenue totalled £547.7m in 2023, up from £323.9m, while its pre-tax profit dipped from £5.5m to £5.4m.
ZEV changes to have an impact?
Earlier this week, the government relaxed the rules around the 2023 petrol and diesel new car ban and also revising the ZEV mandate.
On those changes, the Polestar chief said: “I see really a strong demand for EVs, and not only because of what the frameworks are.
“I think people, especially once they test drive or experience the car, they understand it’s fun to drive, and especially what we offer.
“With Polestar it’s performance, new technology, also sustainability, a very important topic which does not get discussed so much as in the past but it’s relevant for customers.
“Of course, we could always have a bit more support here and there, but at the end of the day customers need to be convinced about the product.
“I mean, it’s not just you both buy a new book or a new shelf, right? It’s an emotional thing, and we want to offer that.
“And of course, we always want to have better frameworks and better support. But let’s focus on what is in our control here.”