Polestar is capitalising on Tesla's widely reported downturn, as it announced a significant increase in global sales for the first quarter of 2025.
The Swedish firm, which is listed on the US Nasdaq, has reportedly sold around 12,304 cars since the start of the year, marking a 76 per cent rise compared to the same period in 2024, as reported by City AM.
In a statement accompanying the figures, Polestar attributed its sales boost to the "growing uptake of newer models and the ongoing transition to an active selling model."
Its performance has also likely been bolstered by the blow Elon Musk's Tesla has suffered since the world's wealthiest individual became closely linked with President Donald Trump's administration.
Commenting on the dip in Tesla sales and its effect on Polestar, CEO 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 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'
Discussing the future direction of the Swedish automotive brand, primarily owned by Volvo and Chinese conglomerate Geely, the chief executive drew an analogy from his personal experience: "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."
He also emphasized the company's dedication to luxury, stating: "But we also want to have a premium approach."
He further clarified the positioning of the brand: "So we see Polestar is a premium brand, so we always want to have a certain price premium against a basket of competitors."
The CEO indicated that being the leading EV brand in volume is not their goal: "We don't really say hey, we want to be the number one volume EV company."
Rather, the focus is on maintaining exclusivity while increasing output: "We want to have this premium character, but, of course, we want to grow volume."
He expressed optimism about the company's growth trajectory: "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
Regarding recent fluctuations in Polestar's share value amidst developments in trade policy and President Trump's tariff declarations, Lohscheller shared insights into the company's strategy: "We live in a world where localisation is very important, probably even more important than in the past."
He also discussed how they leverage their relationship with Volvo in the United States: "That's why, with regard to the US, we use the Volvo plant in Charleston, in South Carolina. That's very helpful."
Celebrating the success of their latest model, he added: "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."
Looking ahead, Lohscheller stressed the importance of localisation: "But the way forward is really localisation, probably even deep localisation, including suppliers, but that's obviously something to look at."
Lohscheller remained tight-lipped on whether the UK is being considered for a new factory that will produce the Polestar 7, with an official announcement anticipated in the forthcoming weeks.
Polestar is set to reveal its financial performance for 2024 later this month.
In the previous year, the brand's revenue in the UK reached £547.7m, a significant increase from £323.9m, although pre-tax profit saw a slight decrease from £5.5m to £5.4m.
Will changes to ZEV regulations make a difference?
The government has recently eased the restrictions surrounding the 2023 ban on new petrol and diesel cars, as well as making adjustments to the ZEV mandate.
Commenting on these revisions, the Polestar CEO remarked: "I see really a strong demand for EVs, and not only because of what the frameworks are."
He added: "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."
He further noted: "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."
