According to Jordan Hofmann, Polestar's Head of Sales in the U.S., a targeted campaign offering hefty incentives to existing Tesla owners was a major catalyst for the increased sales volume, which reached 12,304 vehicles globally in the first three months of the year. While the exact global percentage breakdown wasn't fully detailed, Hofmann indicated that this conquest strategy targeting dissatisfied or deal-seeking Tesla customers played a crucial role, accounting for nearly half of the brand's global sales momentum during the period.
The specific U.S. offer provided Tesla owners with discounts potentially reaching up to $20,000 towards a lease on the Polestar 3 SUV. This incentive significantly alters the vehicle's cost calculation. A fully equipped long-range, dual-motor Polestar 3, typically priced around $93,000, could drop to approximately $73,000 for qualifying Tesla owners. This revised price point positions the Polestar 3 competitively below the starting price of a Tesla Model S, which begins near $80,000.
"We piloted a conquest campaign in late February," a Polestar spokesperson confirmed to Reuters. "Based on the positive response, we ran a new campaign for the month of March. We are currently running a similar campaign for April." Hofmann previously highlighted the campaign's success, stating on LinkedIn a month prior, "This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible."
This strategic move by Polestar comes amid a shifting landscape in the electric vehicle market. Industry observers note that the push likely aims to capitalize on several factors: perceived slowing demand for EVs compared to earlier projections, increased competition across the sector, and potentially, a "conquest opportunity" arising from reported dissatisfaction among some consumers regarding Tesla, potentially linked to CEO Elon Musk's public profile or recent operational decisions. Tesla itself has faced challenges, reflected in a significant drop in its stock price year-to-date and reports of increased trade-ins.
Furthermore, the broader automotive industry is navigating economic uncertainties, including concerns about potential price increases stemming from international trade tariffs. This anxiety may be spurring consumers to purchase vehicles sooner rather than later. Polestar's competitors are also employing aggressive tactics; Ford Motor Co. and Stellantis initiated deep discounts recently, while Hyundai has pledged price stability. Fellow US EV maker Lucid Motors has similarly introduced offers targeting Tesla owners, providing discounts of up to $4,000 on its luxury Air sedans with a Tesla trade-in.
For Polestar, which is backed by China's Geely holding group, increasing sales volume is particularly vital. The company is investing heavily in expanding production and streamlining operations as it pushes towards profitability following an executive reshuffle last year aimed at improving financial performance and securing stable funding.
A key element of Polestar's strategy involves bolstering its manufacturing presence outside of China, notably with the Polestar 3 being produced at a Volvo Cars facility in South Carolina. This move not only diversifies its production base but also positions the company more favorably regarding potential U.S. tariffs on vehicles imported from China, a concern impacting many automakers reliant on Chinese manufacturing. This aligns with broader industry trends, such as General Motors increasing output at an Indiana factory and Hyundai committing billions to US investments.
Polestar's success with the Tesla-focused discount highlights the intense competition and strategic maneuvering currently defining the electric vehicle market as manufacturers fight for market share and navigate complex economic and geopolitical currents.