EV Maker Polestar Takes Direct Aim at Tesla With $20,000 Discount

Electric vehicle maker Polestar is taking direct aim at Elon Musk’s Tesla. The Swedish company is giving current American Tesla owners a $20,000 discount if they lease a Polestar 3 EV.

According to the automaker, Tesla owners can use both a $5,000 “Conquest Bonus” and a $15,000 “Clean Vehicle Incentive” toward their new Polestar 3. The model has a 350-mile range and 517 horsepower. Google Assistant and Apple CarPlay are available for entertainment options.

“We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March,”  said a company spokesperson, per Reuters. “We are currently running a similar campaign for April.”

The March Conquest promotion saw record orders for the Polestar 3. The campaign received an “incredible” response from consumers, according to a social media post from the EV maker’s head of U.S. sales, Jordan Hofmann.

The Polestar 3, with all the options, has a sticker price of around $93,000. Using the Tesla-owner discounts, the model can be obtained for about $73,000. Depending on the upgrades, Tesla’s Model S costs nearly $80,000.

Car Companies Like Polestar Are Rethinking Strategies

With tariffs looming, consumers are suddenly flocking to dealerships to buy automobiles. In addition to Polestar, other car sellers are seeing an opportunity to move more cars off the lots.

EV manufacturer Lucid is offering rebates worth up to $4,000 when a Tesla owner buys an Air model sedan before April 30. Stellantis and Ford are also giving substantial discounts on vehicles.

The recent announcement of a 125% tariff on goods from China has sent shockwaves across just about every industry. In particular, car companies need to rethink their automobile production strategies.

Polestar, which buys crucial components from China, is searching for new suppliers to avoid higher costs and potential delays related to Chinese imports. It is also trying to keep as much of the production process within the U.S., which includes its agreement with Volvo to manufacture the Polestar 3 at a plant in South Carolina.

Detroit-based General Motors announced it was boosting manufacturing output at an Indiana factory, while South Korean automaker Hyundai is making multi-billion-dollar investments in facilities located in the U.S.