Polestar, a Swedish electric vehicle manufacturer, is providing discounts of up to US$20,000 to Tesla owners in the United States who lease its Polestar 3 model.

This campaign began in February and will continue through April, targeting Tesla customers amid concerns about decreasing electric vehicle demand and potential price increases due to tariffs.

According to Polestar’s website, a long-range, dual-motor Polestar 3 with all upgrades is priced at approximately US$93,000.

With the discount applied, Tesla owners could lease the vehicle for around US$73,000. In comparison, Tesla’s Model S starts at just under US$80,000.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Conquest campaigns signal a maturing EV market landscape

Polestar’s aggressive $20,000 discount strategy represents a significant shift in electric vehicle competition beyond just price wars.

Tesla’s market dominance is showing cracks, with sales declining nearly 9% in Q1 2025 while overall EV sales grew by 10.6% year-over-year, creating an opportunity for competitors to capture market share1.

This approach follows Polestar’s established pattern of directly targeting Tesla, similar to their 2022 Super Bowl ad that performed significantly better than median Super Bowl commercials with direct jabs like “No conquering Mars”2.

The timing is strategic as EV inventory levels have surged while new electric vehicles remain on dealers’ lots for an average of 85 days, far longer than conventional vehicles, indicating shifting consumer selectivity3.

For Polestar specifically, this campaign addresses urgent business pressures after missing its 2023 sales target of 60,000 vehicles, delivering only 54,600 units, which triggered a management restructuring including new sales leadership4.

2️⃣ Domestic production becomes strategic advantage amid tariff uncertainties

Polestar’s emphasis on its South Carolina-produced Polestar 3 showcases how manufacturing location has become a critical marketing point in today’s trade environment.

The recent implementation of a 25% tariff on imported passenger vehicles has created significant pricing disruption across the automotive industry, making domestically-produced vehicles more competitively positioned5.

This tariff impact varies by manufacturer, but the broader 25% tariff on imported vehicles creates widespread pricing pressure3.