EV maker Polestar bids to lure disgruntled Tesla owners with discounts

By Zaheer Kachwala and Marie Mannes

(Reuters) - Polestar is offering discounts of up to $20,000 towards a lease of its Polestar 3 conveyance for existent Tesla owners successful the United States, arsenic the Swedish EV shaper targets drivers shunning CEO Elon Musk's car brand.

The run connected Polestar's website appears to beryllium an effort by the institution to lure disgruntled Tesla customers with the discounts amid slower-than-expected EV request and worries that higher tariffs whitethorn rise conveyance prices.

A agelong range, dual centrifugal Polestar 3 with each the upgrade packs would outgo astir $93,000, the website says, but for Tesla owners utilizing the discounts, the terms would descend to $73,000. A Tesla Model S starts astatine conscionable nether $80,000.

"We piloted a conquest run successful precocious February. Based connected the affirmative effect we ran a caller run for the period of March. We are presently moving a akin run for April," a spokesperson of Polestar told Reuters.

The connection is valid for its Polestar 3, which is produced successful a Volvo Cars mill successful South Carolina.

Tesla's banal has dropped 32% truthful acold this twelvemonth from mediocre income and grounds Tesla trade-ins amid disapproval of Musk owed to the billionaire's arguable relation successful the Trump medication arsenic helium works to slash national authorities spending.

POTENTIAL PRICE RISE

Polestar joins a throng of automakers scrambling for marketplace stock arsenic shoppers successful the U.S. and beyond scour trader tons to effort to drawback up a car acquisition earlier immoderate imaginable emergence successful prices from the higher U.S. tariffs.

Ford Motor and Stellantis offered heavy discounts starting this month, and Hyundai committed to keeping prices stable.

Polestar has been trying to grow its accumulation basal successful the United States and trim dependence connected China - a strategy much important present aft U.S. President Donald Trump imposed sweeping tariffs connected the world's largest car market.

Indeed, some U.S. and different automakers are trying to heighten their manufacturing footprint. General Motors past week told workers it would summation output astatine a mill successful Indiana, and Hyundai committed to a $21 cardinal concern successful the U.S.

Polestar said earlier campaigns had been positive.

"The numbers talk for themselves. This week saw immoderate of the highest bid days for Polestar 3, and the effect to our Tesla Conquest Offer has been incredible," Jordan Hofmann, Polestar's caput of income successful the U.S., said successful a LinkedIn station a period ago.

The institution did not supply further details oregon quantify the interaction of the erstwhile promotion.

U.S. EV shaper Lucid besides hopped connected the trend, offering discounts of up to $4,000 for purchases of its luxury Air sedans if a lawsuit trades successful a Tesla vehicle.